Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly….

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(Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.  

Debit

Credit

Prepaid   Insurance

$3,600  

Supplies

2,800  

Equipment

25,000  

Accumulated   Depreciation—Equipment  

$8,400

Notes   Payable  

20,000

Unearned   Rent Revenue  

6,300

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 $250 per month.

2. One-third of the unearned rent was earned during the quarter.

3. Interest of $500 is accrued on the notes payable.

4. Supplies on hand total $650.

5. Insurance expires at the rate of $300 per month.

Instructions

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. (Omit explanations.)