The ledger of Duggan Rental Agency on March 31

E3-5 The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. 

 

Debit

Credit

Prepaid Insurance

$3,600

 

Supplies

2,800

 

Equipment

25,000

 

Accumulated Depreciation - Equipment

 

$8,400

Notes Payable

 

20,000

Unearned Rent Revenue

 

9,300

Rent Revenue

 

60,000

Interest Expense

0

 

Salaries and Wage Expense

14,000

 

Totals:

$45,400

$97,700

 

An analysis of the accounts shows the following:

1. The equipment depreciation $250 per month is:

2. One-third of the unearned rent was earned during the quarter.

3. Interest of $500 is accrued for the month on notes payable is:

4. Supplies on hand total $850

5. insurance expires at the rate of $300 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, Supplies Expense. (Omit explanations.)

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    The ledger of Duggan Rental Agency on March 31

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