The ledger of Bourque Rental Agency on March 31, 2021, includes the following selected accounts before preparing quarterly adjusting entries: Debit Credit Supplies $ 13,600 Prepaid Insurance 3,440 Equipment 37,760 Accumulated Depreciation—Equipment $ 9,440 Unearned Revenue 9,200 Notes Payable 28,800 Rent Revenue 29,800 Salaries Expense 13,600 An analysis of the accounts shows the following:1. The equipment has a four-year useful life.2. One-quarter of the unearned rent is still unearned on March 31, 2021.3. The note payable has an interest rate of 4%. Interest is paid every June 30 and December 31.4. Supplies on hand at March 31 total $ 760.5. The one-year insurance policy was purchased on January 1, 2021.6. As at March 31, a tenant owed Bourque $ 600 for the month of March.Prepare the quarterly adjusting entries required at March 31, 2021

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10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The ledger of Bourque Rental Agency on March 31, 2021, includes the following selected accounts before preparing quarterly adjusting entries:

	Debit	Credit
Supplies	$ 13,600
Prepaid Insurance	3,440
Equipment	37,760
Accumulated Depreciation—Equipment		$ 9,440
Unearned Revenue		9,200
Notes Payable		28,800
Rent Revenue		29,800
Salaries Expense	13,600

An analysis of the accounts shows the following:

1.		The equipment has a four-year useful life.
2.		One-quarter of the unearned rent is still unearned on March 31, 2021.
3.		The note payable has an interest rate of 4%. Interest is paid every June 30 and December 31.
4.		Supplies on hand at March 31 total $ 760.
5.		The one-year insurance policy was purchased on January 1, 2021.
6.		As at March 31, a tenant owed Bourque $ 600 for the month of March.