The ledger of Beckett Rental Agency on March 31
of the current year includes the selected accounts below before adjusting
entries have been prepared.
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Debit
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Credit
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Supplies
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$ 3,390
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Prepaid Insurance
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2,430
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Equipment
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27,400
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Accumulated Depreciation—Equipment
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$ 8,220
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Notes Payable
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19,400
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Unearned Rent Revenue
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10,760
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Rent Revenue
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57,900
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Interest Expense
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0
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Salaries and Wages Expense
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15,100
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An analysis of the accounts shows the following.
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1.
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The equipment depreciates $310 per month.
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2.
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Half of the unearned rent revenue was earned during the quarter.
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3.
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Interest of $550 is accrued on the notes payable.
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4.
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Supplies on hand total $900.
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5.
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Insurance expires at the rate of $270 per month.
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Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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No.
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Account Titles and
Explanation
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Debit
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Credit
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1.
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2.
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3.
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4.
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5.
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