Problemthe ledger of perez rental agency on march 31 of the, Ask an Expert

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The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared.

	Debit	Credit
Prepaid Insurance	$ 12,600
Supplies	2,700
Equipment	25,000
Accumulated Depreciation-Equipment		$ 8,400
Notes Payable		24,000
Unearned Rent Revenue		10,700
Rent Revenue		58,000
Interest Expense	0
Salaries and Wages Expense	11,000

An analysis of the accounts shows the following.

1. The equipment depreciates $400 per month.
2. One-third of the unearned rent revenue was earned during the quarter.
3. Interest totaling $600 is accrued on the notes payable for the quarter.
4. Supplies on hand total $880.
5. Insurance expires at the rate of $700 per month.

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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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92740473

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