Debit Credit $3,450 4,140 25.200 Supplies Prepaid Insurance Equipment Accumulate

Question

Debit Credit $3,450 4,140 25.200 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Uncarned Rent Revenue Rent Revenue $7,560 19,600 10,650 55,500 Interest Expense Salaries and Wages Expense 14,100 An analysis of the accounts shows the following 1. The equipment depreciates $330 per month 2. Half of the unearned rent revenue was earned during the quarter 3. Interest of $ 470 is accrued on the notes payable. 4 Supplies on hand total $ 800, 5. Insurance expires at the rate of $ 460 per month. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.(If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually)

Explanation / Answer

SOLUTION

Date Accounts titles and Explanation Debit ($) Credit ($) March 31 Depreciation Expense ($330 * 3 months) 990 Accumulated depreciation-Equipment 990 (To record the depreciation expense) March 31 Unearned rent revenue ($10,650*1/2) 5,325 Rent revenue 5,325 (To record the rent revenue earned during the period) March 31 Interest expense 470 Interest payable 470 (To record the interest expense) March 31 Supplies expense ($3,450 - $800) 2,650 Supplies 2,650 (To record the usage of supplies during the period) March 31 Insurance expense ($460 * 3months) 1,380 Prepaid Insurance 1,380 (To record the prepaid insurance expired)

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