Question

The ledger of Pharoah Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Credit Debit $8,700 Supplies Prepaid Insurance 10,440 Equipment 72,500 Accumulated Depreciation-Equipment $24,360 Notes Payable Unearned Rent Revenue 58,000 35,960 174,000 Rent Revenue Interest Expense Salaries and Wages Expense 40,600 An analysis of the accounts shows the following 1. The equipment depreciates $812 per month 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $1,160 is accrued on the notes payable. 4. Supplies on hand total $2.465. 5. Insurance expires at the rate of $1,160 per month

Answer 1

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Mar. 31	Depreciation expense ($812 X 3)	$2,436	-
		Accumulated depreciation	-	$2,436
2.	Mar. 31	Unearned rent revenue ($35,960 / 2)	$17,980	-
		Rent revenue	-	$17,980
3.	Mar. 31	Interest expense	$1,160	-
		Interest payable	-	$1,160
4.	Mar. 31	Supplies expense ($8,700 - $2,465)	$6,235	-
		Supplies	-	$6,235
5.	Mar. 31	Insurance expense ($1,160 X 3)	$3,480	-
		Prepaid insurance	-	$3,480

Answer 2

The ledger of Pharoah, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries. Debit Credit Prepaid Insurance $2,300 Supplies 3,000 Equipment 29,800 Unearned Service Revenue $8,600 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $460 per month. 2. Supplies on hand total $1,600. 3. The equipment depreciates $500 per month. 4. During March, services were performed for two-fifths of the unearned service revenue.