The ledger of Uniform Ltd on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have been prepared. 

An analysis of the accounts shows the following:

1. The equipment depreciates $1600 per month.

2. The rent revenue received in advance was for the 9 months commencing 1 April.

3. Interest of $975 is accrued on the bank loan.

4. Supplies on hand total $2800.

5. The benefits of prepaid insurance expire at the rate of $1170 per month.

Required

Prepare the adjusting entries at 30 June, assuming that adjusting entries are made quarterly. Additional accounts and account numbers are: 420 Depreciation Expense, 430 Insurance Expense, 220 Interest Payable, and 440 Supplies Expense.  

Transcribed Image Text:

100 Prepaid Insurance 110 Supplies 120 Equipment 121 Accumulated Depreciation Equipment 200 Bank Loan 210 Rent Revenue Received in Advance 300 Rent Revenue 400 Interest Expense 410 Wage Expense Debits $ 14040 8400 97 500 54 600 Credits $ 31800 78 000 36 270 234 000