Debit credit prepaid insurance


The ledger of Danieal Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 8,640 Supplies 3,198 Equipment 19,375 Accumulated Depreciation-Equipment $ 6,820 Notes Payable 25,000 Unearned Rent Revenue 9,300 Rent Revenue 59,339 Interest Expense 0 Salaries and Wages Expense 15,808 An analysis of the accounts shows the following 1. The equipment depreciates $310 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest of $625 is accrued on the notes payable. 4. Supplies on hand total $759. 5. Insurance expires at the rate of $480 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.

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Accounting Basics: Debit credit prepaid insurance
Reference No:- TGS0554482

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