Question - The ledger of Thurston Rental Agency on March 31 of the current year includes these selected accounts before adjusting entries have been prepared.
Prepaid Insurance Debit $3,600
Supplies 3,000
Equipment 25,000
Accumulated Depreciation-Equip Credits $8,400
Notes payable 20,000
Unearned Rent Revenue 10,200
Rent Revenue 60,000
Interest Expense 0
Wage Expense 14,000
An Analysis of the accounts shows the following,
1. The equipment depreciates $280 per month
2. Half of the unearned rent revenue was earned during the quarter.
3. Interest of $440 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $400 per month.
Prepare the adjusting entries at March 32, assuming thqat adjusting entries are made quarterly.