E3-5 The ledger of Duggan Rental Agency reflections

Posted: October 1st, 2022

E3-5The ledger of Duggan 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
 
9,300
Rent Revenue
 
60,000
Interest Expense
0
 
Salaries and Wage Expense
14,000
 
Totals:
$45,400
$97,700
 
An analysis of the accounts shows the following:
1.The equipment depreciation $250 per month is:
2.One-third of the unearned rent was earned during the quarter.
3.Interest of $500 is accrued for the month on notes payable is:
4.Supplies on hand total $850
5.insurance expires at the rate of $300 per month
 
InstructionsPrepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, Supplies Expense. (Omit explanations.)