exercise 2

Exercise 2: On March 31, 2015, Easy Rental Agency Inc.'s trial balance included the following unadjusted account balances. The company's year-end is December 31 , and it adjusts its accounts quarterly. An analysis of the accounts shows the following: 1. The equipment, which was purchased on January 1, 2014, is estimated to have a useful life of four years. 2. One-third of the unearned rent revenue is still unearned at the end of the quarter. 3. The loan payable has an interest rate of 6%. Interest is paid on the fi rst day of each following month and was last paid on March 1, 2015. 4. Supplies on hand total $850 on March 31 . 5. The one-year insurance policy was purchased for $14,400 on January 1. 6. Income tax is estimated to be $3,200 for the quarter Exercise 2: On March 31, 2015, Easy Rental Agency Inc.'s trial balance included the following unadjusted account balances. The company's year-end is December 31 , and it adjusts its accounts quarterly. An analysis of the accounts shows the following: 1. The equipment, which was purchased on January 1, 2014, is estimated to have a useful life of four years. 2. One-third of the unearned rent revenue is still unearned at the end of the quarter. 3. The loan payable has an interest rate of 6%. Interest is paid on the fi rst day of each following month and was last paid on March 1, 2015. 4. Supplies on hand total $850 on March 31 . 5. The one-year insurance policy was purchased for $14,400 on January 1. 6. Income tax is estimated to be $3,200 for the quarter