The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

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.

Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and SuppliesExpense.

Transcribed Image Text:

Credit Debit 3,000 3,600 25,000 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Uneaned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense 8,400 20,000 12,400 60,000 0 14,000