The ledger of Oriole 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 $ 7,200 Supplies 2,700 Equipment 18,750 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 9,900 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 14,000 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 $ 530. 5. Insurance expires at the rate of $ 400 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 the amount is entered. Do not indent manually.)
EXERCICE 3
Current Attempt in Progress
The ledger of Oriole Rental Agency on March 31 of the current year includes the selected accounts, shown below, before
|
Debit |
Credit |
|||
|---|---|---|---|---|
|
Prepaid Insurance |
$ 7,200 | |||
|
Supplies |
2,700 | |||
|
Equipment |
18,750 | |||
|
|
$ 8,400 | |||
|
Notes Payable |
20,000 | |||
|
Unearned Rent Revenue |
9,900 | |||
|
Rent Revenue |
60,000 | |||
|
Interest Expense |
0 | |||
|
Salaries and Wages Expense |
14,000 |
An analysis of the accounts shows the following.
| 1. | The equipment |
|
| 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 $ 530. | |
| 5. | Insurance expires at the rate of $ 400 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 the amount is entered. Do not indent manually.)
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|---|
|
1. |
Mar. 31 |
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
||
|
2. |
Mar. 31 |
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
||
|
3. |
Mar. 31 |
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
||
|
4. |
Mar. 31 |
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
||
|
5. |
Mar. 31 |
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the adjusting entry on March 31 |
enter a debit amount |
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