The ledger of Chan Rental Agency on March 31 of the current year includes the...
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Accounting
The ledger of Chan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared:
Debit
Credit
Prepaid Insurance
$ 2,700
Supplies
2,100
Equipment
18,750
Accumulated DepreciationEquipment
$ 6,300
Notes Payable
15,000
Unearned Rent Revenue
6,975
Rent Revenue
45,000
Interest Expense
0
Salaries and Wage Expense
10,500
An analysis of the accounts shows the following:
The equipment depreciates $188 per month.
One-third of the unearned rent was recognized as revenue during the quarter.
Interest of $375 is accrued on the notes payable.
Supplies on hand total $637.
Insurance expires at the rate of $225 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense.
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