An analysis of the accounts shows the following.1. The equipment depreciates $300 per month.2. One-third of the unearned rent revenue was earned during the quarter.3. Interest of $500 is accrued on the notes payable.4. Supplies on hand total $590.5. Insurance expires at the rate of $400 per month. The ledger of Cullumber Rental Agency on March 31 of the current year includes the selected accounts, shown below, beforeadjusting entries have been prepared.DebitCreditPrepaid Insurance$7,200Supplies2,600Equipment18,750Accumulated Depreciation-Equipment$ 8,500Notes Payable20,000Unearned Rent Revenue10,200Rent Revenue62,000Interest ExpenseSalaries and Wages Expense10,000 Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts areDepreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually.)No.DateAccount Titles and ExplanationDebitCredit1.Mar. 312.Mar. 313.Mar. 31Mar. 315.Mar. 314.

Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…

An analysis of the accounts shows the following. 1. The equipment depreciates $300 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $590. 5. Insurance expires at the rate of $400 per month.

An analysis of the accounts shows the following. 1. The equipment depreciates $300 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $590. 5. Insurance expires at the rate of $400 per month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During its first year of operations, Fertig Company had credit sales of $3,000,000, of which $400,000 remained uncollected at year- end. The credit manager estimates that $18,000 of these receivables will become uncollectible. The accounts receivable turnover is 10 times and average collection period is 36.5 days. Assume that average net accounts receivable were $300.000. Explain what these measures tell us. BI V T, TI E LE E H I 99 H E à ला 11 A A OWord(s)
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bartleby, a Learneo, Inc. business

1.		The equipment depreciates $300 per month.
2.		One-third of the unearned rent revenue was earned during the quarter.
3.		Interest of $500 is accrued on the notes payable.
4.		Supplies on hand total $590.
5.		Insurance expires at the rate of $400 per month.