l TMobile LTE 420 PM a edugenwileypluscom Exercise 307 Video

l T-Mobile LTE 4:20 PM a edugen.wileyplus.com Exercise 3-07 (Video) The ledger of Cullumber Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared DebitCredit Prepaid Insurance $9,000 3,200 25,000 Equipment $8,100 22,000 9,300 58,000 Notes Payable Unearned Rent Revenue Interest Expense Salaries and Wages Expense 19,000 An analysis of the accounts shows the following . The equipment depreciates $400 per month. 2. One-third of the unearned rent revenue was earned during the quarter 3. Interest of $550 is accrued on the notes payable. 4. Supplies on hand total $620. s. Insurance expires at the rate of $500 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.) Na. Date Acceeat Tiales and Esplanstio 1. Mar. 31 2 Mar 31 3. Mar 31 4. Mar 31 S. Mar 31 Click if you would like to Show Work for this question: Open Show Work

Solution

Adjusting entries date Accounts title and explanation Debit $ Credit $ 31-Mar Depreciation expense Dr. 1200    Accumulated depreciation 1200 31-Mar Unearned Rent revenue Account Dr. 3100      Rent revenue Account 3100 31-Mar Interest expense Account Dr. 550      Interest expense payable Account 550 31-Mar Supplies expense Account Dr. 2580     Supplies account 2580 31-Mar Insurance expense Account Dr. 1500      Prepaid insurance 1500