Question

A partial tabular summary for Metlock, Inc. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Assets Liabilities + Stockholders' Equity Acc. Depr: Int. Unearn. Rent Com. Reatined Earnings Supplies + Prepaid Insurance + Equip. - Equip - Pay + Notes Pay + Rev. + Stock + Rev.. Exp. Div Bal. 3,640 2,700 28,900 8,670 0 18,100 11.250 An analysis of the accounts shows the following 1. The equipment depreciates $400 per month. 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $320 is accrued on the notes payable. 4. Supplies on hand total $880. 5. Insurance expires at the rate of $300 per month. Prepare a tabular summary to record adjustments at March 31, assuming that adjustments are made quarterly. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Answer 1

Liabilit Supplies Assets Prepaid + Equipment - Insurance 2700 28900 Int. pay. + Notes Pay. Acc. Dept.- Equip. -8670 -1200 Bal. 3640 | + 18100 + + + + + + + + -2760 + -900 +

ies Unearn. Rent Rev. 11250 Common Stock Stockholders' Equity Retained Earnings - Exp. - Rev. - 1200 -5625 5625 -320 -2760 -900 Depreciation Expense Rent Revenue Interest Expense Supplies Expense Insurance Expense