Question

INTERMEDIATE ACCOUNTING I (AC ctke Assignment Gradebook ORION Downloadable eTextbook ament CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION RACK Credit Debit $3,600 2,800 25,000 Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $8,400 20,000 9,300 60,000 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 recognized as revenue during the quarter 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $850. 5. Insurance expires at the rate of $300 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 Expenses. (Credit account titles are automatically indented when amount is entered Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) No, Account Titles and Explanation Debit search o E a * e 9w0 S AGE

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
31-Mar	Depreciation expense Dr	$750.00
	To Accumulated depreciation - Equipment		$750.00
	(To record depreciation expense)
31-Mar	Unearned rent revenue Dr	$3,100.00
	To Rent revenue		$3,100.00
	(To record rent revenue)
31-Mar	Interest expense Dr	$500.00
	To Interest payable		$500.00
	(To record interest expense)
31-Mar	Supplies expense Dr	$1,950.00
	To Supplies		$1,950.00
	(To record supplies expense)
31-Mar	Insurance expense Dr	$900.00
	To Prepaid insurance		$900.00
	(To record insurance expense)