Question

Exercise 4-9 The ledger of Oriole Company on March 31 of the current year indudes the selected accounts below before adjusting entries have been prepared Debit Credit $3,280 4,230 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue $8,160 19,300 11,450 56,700 Rent Revenue Interest Expense Salaries and Wages Expense 12,600 An analysis of the accounts shows the following. 1 The equipment deprecdiates $400 per month. 2. Half of the unearned rent revenue was earned during the quarter 3. Interest of $590 is accrued on the notes payable. 4. Supplies on hand total $850. 5. Insurance expires at the rate of $470 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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manualiy) search 5 6 7 8

Answer 1

Solution:
No.	Account Titles and Explanation	Debit	Credit
1.	Depreciation expense	1200
	Accumulated depreciation-equipment		1200
	[400 per month x 3 months = 1200]
Notes:	[In a quarter there is 3 months and Adjusting entries are made for quarterly entry]
2.	Unearned rent revenue	5,725
	Rent revenue		5,725
Notes:	[11,450 /2 = $5,725   ]
3.	Interest expense	590
	Interest payable		590
Notes:	Interest accrued $590 , interest expense booked
4.	supplies expense	2430
	supplies		2430
Notes:	[3,280 Beginning - 850 In hand at last = $2,430 Expense ]
5.	Insurance expense	1410
	Prepaid insurance		1410
Notes:	[470 per month x 3 months = 1,410]
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