Reference no: EM131678634

Problem - Prepare the monthly adjusting journal entries for Charlotte Ruston Inc. for the month ending March 31, 2006 using the following information (you may omit explanations for the transactions):

1. The balance in Supplies at March 1, 2006 is $2,000.  The company made no purchases of supplies during March.  An inventory of supplies on hand at March 31 reported supplies of $800.

2. The company pays weekly salaries for a 5-day week of $3,500 every Friday.  March 31 falls on a Tuesday.

3. The company has an outstanding note payable of $10,000 due at December 31, 2006.  Interest is accrued monthly on the note. The annual rate is 6%.

4. The company depreciates its plant and equipment at the rate of $4,000 per month.

5. The company purchased a 18-month insurance policy for $2,250 on January 1, 2006.