Reference no: EM131764150

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

Debit Credit
Prepaid Insurance $3,564
Supplies 2,662
Equipment 26,270
Accumulated Depreciation-Equipment $7,994
Notes Payable 18,830
Unearned Rent Revenue 5,940
Rent Revenue 58,640
Interest Expense    -0-
Salaries and Wages Expense 14,910

An analysis of the accounts shows the following.

1. The equipment depreciates $272 per month.
2. One-third of the unearned rent was earned as revenue during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $599.
5. Insurance expires at the rate of $297 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 Expenses. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)