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

An analysis of the accounts shows the following.1. The equipment depreciates $400 per month.2. Supplies on hand total $750.3. Insurance expires at the rate of $300 per month.

InstructionsPrepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, and Supplies Expense.

Transcribed Image Text:

Debit Credit Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Salaries and Wages Expense $ 3,600 2,800 25,000 $8,400 14,000