The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.
|
|
Debit
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Credit
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|
Supplies
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$3,550
|
|
|
Prepaid Insurance
|
4,140
|
|
|
Equipment
|
24,700
|
|
|
Accumulated Depreciation-Equipment
|
|
$7,410
|
|
Notes Payable
|
|
19,100
|
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Unearned Rent Revenue
|
|
11,440
|
|
Rent Revenue
|
|
58,500
|
|
Interest Expense
|
0
|
|
|
Salaries And Wages Expense
|
14,600
|
|
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 $310 is accrued on the notes payable.
4. Supplies on hand total $830.
5. Insurance expires at the rate of $460 per month.
Required:
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.