The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts
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Question:
The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.
Debit | Credit | |
---|---|---|
Supplies | $3,000 | |
Prepaid Insurance | 3,600 | |
Equipment | 25,000 | |
Accumulated Depreciation--Equipment | $8,400 | |
Notes Payable | 20,000 | |
Unearned Rent Revenue | 12,400 | |
Rent Revenue | 60,000 | |
Interest Expense | 0 | |
Salaries and Wages Expense | 14,000 |
An analysis of the accounts shows the following.
1. The equipment depreciates $280 per month.
2. Half of the unearned rent revenue was earned during the quarter.
3. Interest of $400 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $400 per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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