Reference no: EM132186726

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

Debit Credit

Prepaid Insurance $3,864

Supplies 2,637

Equipment 23,780

Accumulated Depreciation-Equipment $8,654

Notes Payable 18,800

Unearned Rent Revenue 4,980

Rent Revenue 56,670

Interest Expense-0-Salaries and Wages Expense 15,100

An analysis of the accounts shows the following.

1. The equipment depreciates $250 per month.

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

3. Interest of $520 is accrued on the notes payable.

4. Supplies on hand total $585.

5. Insurance expires at the rate of $322 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.