EXERCISES

E$4\mathrm{.}9($LO $2_{{?}_{?}}(2),3),$ AP The ledger of Howard Rental Agency on March $31$ of the current year

includes the selected accounts below before adjusting entries have been prepared.

Prepare adjusting entries from selected account data.

An analysis of the accounts shows the following.

The equipment depreciates $$280$ per month.

Half of the unearned rent revenue was earned during the quarter.

Interest of $$400$ is accrued on the notes payable.

Supplies on hand total $$850.$

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 Supplies Expense.