fill in charts signment CALCULATOR MESSAGE MY INSTR Exercise

fill in charts

signment CALCULATOR MESSAGE MY INSTR Exercise 3-7 he ledger of Sheffield Corp. on March 31 of the current year indudes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Debit Credit Prepaid Insurance Supplies $ 7,200 3,400 18,750 Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense s 8,000 22,000 10,800 60,000 Salaries and Wages Expense 20,000 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 totaling $550 is accrued on the notes payable for the quarter 4. Supplies on hand total $790. 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 when the amount is entered. Do not indent manually) es Expense. No. Date Account Titles Debit Credit All Rights Reserved. A Division of John Wiley & Sons Ine

Solution

No. Date Account titles Debit Credit 1) Mar. 31 Depreciation Expenses $        900 Accumulated depreciation-Equipment $       900 Working: Depreciation expenses for quarter = $       300 x 3 $        900 2) Mar. 31 Unearned Rent Revenue $     3,600 Rent Revenue $   3,600 Working: one third of unearned rent revenue = $ 10,800 x 1/3 = $    3,600 3) Mar. 31 Interest expense $        550 Interest Payable $       550 4) Mar. 31 Supplies expense $     2,610 Supplies $   2,610 Working: supplies before adjustment $     3,400 supplies after adjustment $        790 Supplies expenses $     2,610 5) Mar. 31 Insurance expense $     1,200 Prepaid Insurance $   1,200 Working: Insurance expires for quarter = $       400 x 3 = $    1,200