Reference no: EM131777107

Question - The ledger of Chopin 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 

Accumulated Depreciation-Equipment $8,400

Notes Payable 20,000

Unearned Rent Revenue 9,300

Rent Revenue 60,000

Interest Expense -0-

Wage Expense 14,000 

An analysis of the accounts shows the following.

1. The equipment depreciates $250 per month.

2. One-third of the unearned rent was earned during the quarter.

3. Interest of $500 is accrued on the notes payable.

4. Supplies on hand total $650.

5. Insurance expires at the rate of $300 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.