Question

he ledger of Sheridan Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

		Debit		Credit
Supplies		$9,000
Prepaid Insurance		10,800
Equipment		75,000
Accumulated Depreciation—Equipment				$25,200
Notes Payable				60,000
Unearned Rent Revenue				37,200
Rent Revenue				180,000
Interest Expense		0
Salaries and Wages Expense		42,000

An analysis of the accounts shows the following.

1.		The equipment depreciates $840 per month.
2.		Half of the unearned rent revenue was earned during the quarter.
3.		Interest of $1,200 is accrued on the notes payable.
4.		Supplies on hand total $2,550.
5.		Insurance expires at the rate of $1,200 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Mar. 31	enter an account title to record the first transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the first transaction	Enter a debit amount	Enter a credit amount
2.	Mar. 31	enter an account title to record the second transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the second transaction	Enter a debit amount	Enter a credit amount
3.	Mar. 31	enter an account title to record the third transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the third transaction	Enter a debit amount	Enter a credit amount
4.	Mar. 31	enter an account title to record the fourth transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the fourth transaction	Enter a debit amount	Enter a credit amount
5.	Mar. 31	enter an account title to record the fifth transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the fifth transaction	Enter a debit amount	Enter a credit amount

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Answer 1

No 1 Date Account Titles and Explanation | Debit | Credit Mar. 31 Depreciation Expense $ 2,520 Accumulated Depreciation - equipment $ 2,520 2 $18.600 Mar. 31 |Unearned Rent Revenue Rent Revenue $ 18,600 3 $ 1.200 Mar. 31 Interest expense Interest Payable $ 1.200 4 $ 6,450 Mar. 31 Supplies Expense Supplies $ 6,450 5 $ 3,600 Mar. 31 Insurance Expense Prepaid Insurance $ 3,600 2 Working Notes: Depreciation Expense = $840*$3 = $2,520 Unearned Rent Revenue = 37200*1/2 = 18600 Supplies Expense =$9,000-$2,550 = $6,450 Insurance Expense = $1,200*3 = $3,600 5