On March 31, 2021, Sheffield Rental Agency Inc's trial balance included the following selected unadjusted account...

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On March 31, 2021, Sheffield Rental Agency Inc's trial balance included the following selected unadjusted account balances. The company's year end is December 31 and it adjusts its accounts quarterly. Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Deferred revenue Loan payable, due 2023 Rent income Salaries expense 1. 2. 3. 4. An analysis of the accounts shows the following: The equipment, which was purchased on January 1, 2020, is estimated to have a useful life of four years. The company uses straight-line depreciation. 5. Debit $13,900 3,100 22,400 6. 14,600 Credit $ 5,100 9,390 21,000 32,600 One third of the deferred revenue related to rent is still unearned at the end of the quarter. The bank loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2021. Supplies on hand total $900 at March 31. The one-year insurance policy was purchased for $13,900 on January 1. Income tax is estimated to be $3,230 for the quarter. Prepare the quarterly adjusting entries required at March 31. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Mar. 31 31 31 31 31 31 Depreciation Expense Accumulated Depreciation - Equipment Deferred Revenue Rent Income Interest Expense Interest Payable Supplies Expense Supplies Insurance Expense Prepaid Insurance Income Tax Expense Income Tax Payable Debit | Credit 11 On March 31, 2021, Sheffield Rental Agency Inc's trial balance included the following selected unadjusted account balances. The company's year end is December 31 and it adjusts its accounts quarterly. Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Deferred revenue Loan payable, due 2023 Rent income Salaries expense 1. 2. 3. 4. An analysis of the accounts shows the following: The equipment, which was purchased on January 1, 2020, is estimated to have a useful life of four years. The company uses straight-line depreciation. 5. Debit $13,900 3,100 22,400 6. 14,600 Credit $ 5,100 9,390 21,000 32,600 One third of the deferred revenue related to rent is still unearned at the end of the quarter. The bank loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2021. Supplies on hand total $900 at March 31. The one-year insurance policy was purchased for $13,900 on January 1. Income tax is estimated to be $3,230 for the quarter. Prepare the quarterly adjusting entries required at March 31. (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Mar. 31 31 31 31 31 31 Depreciation Expense Accumulated Depreciation - Equipment Deferred Revenue Rent Income Interest Expense Interest Payable Supplies Expense Supplies Insurance Expense Prepaid Insurance Income Tax Expense Income Tax Payable Debit | Credit 11

Answer rating: 100% (QA)

Here are the quarterly adjusting journal entries required at March 31 1 Deprec... View the full answer