The ledger of Duggan Rental Agency on March 31
accounting teacherE3-5 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.)
- 8 years ago
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- e3-5_duggan_rental.xls