Prepare the adjusting entries at march 31 assuming that

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Reference no: EM13482534

The ledger of Piper 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
Accummulated
Depreciation-Equipment		$8,400
Notes Payable		20,000
Unearned Rent Revenue		9,900
Rent Revenue		60,000
Interest Expense	-0-
Wages Expense	14,000

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 of $500 is accrued on the notes payable.
4. Supplies on the hand total $700.
5. Insurance expires at the rate of $200 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, and Supplies Expense.

Reference no: EM13482534

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