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

An analysis of the accounts shows the following.
1. The equipment depreciates $300 per month.
2. One-third of the unearned rent revenue was recognized during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $650.
5. Insurance expires at the rate of $200 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.

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Debit $3,600 2,800 25,000 Credit Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Uncarned Rent Revenue Rent Revenuc Interest Expense Salaries and Wages Expense 8,400 20,000 9,900 60,000 14,000