The ledger of Splish Rental Agency on March 31 of the current year includes the following selected
Question:
The ledger of Splish Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
Debit Credit
Prepaid Insurance $3,828
Supplies 2,756
Equipment 25,340
Accumulated Depreciation-Equipment $9,072
Notes Payable 20,800
Unearned Rent Revenue 8,640
Rent Revenue 59,200
Interest Expense –0– Salaries and Wages Expense 13,920
An analysis of the accounts shows the following.
1. The equipment depreciates $270 per month.
2. One-third of the unearned rent was recognized as revenue during the quarter.
3. Interest of $520 is accrued on the notes payable.
4. Supplies on hand total $661.
5. Insurance expires at the rate of $319 per month.
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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso