Reference no: EM132603776

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

Debit Credit

Prepaid Insurance $3,528

Supplies 3,080

Equipment 24,860

Accumulated Depreciation-Equipment $8,542

Notes Payable 20,040

Unearned Rent Revenue 8,160

Rent Revenue 54,960

Interest Expense -0-

Salaries and Wages Expense 13,980

An analysis of the accounts shows the following.

1. The equipment depreciates $236 per month.

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

3. Interest of $460 is accrued on the notes payable.

4. Supplies on hand total $645.

5. Insurance expires at the rate of $294 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.