Question

The ledger of Sheffield Corp. on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 7,200 Supplies 3,400 Equipment 18,750 Accumulated Depreciation—Equipment $ 8,000 Notes Payable 22,000 Unearned Rent Revenue 10,800 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 20,000 An analysis of the accounts shows the following. 1. The equipment depreciates $300 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest totaling $550 is accrued on the notes payable for the quarter. 4. Supplies on hand total $790. 5. Insurance expires at the rate of $400 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 Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent

Question 3 The ledger of Sheffield Corp. on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Credit Debit $ 7,200 3,400 18,750 Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $ 8,000 22,000 10,800 60,000 20,000 An analysis of the accounts shows the following. 1. 2. 3. 4. 5. The equipment depreciates $300 per month. One-third of the unearned rent revenue was earned during the quarter. Interest totaling $550 is accrued on the notes payable for the quarter. Supplies on hand total $790. Insurance expires at the rate of $400 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 Expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles Debit Credit No. Date 1. Mar. 31 2. Mar. 31 3. Mar. 31 4. Mar. 31 5. Mar. 31 Click if you would like to Show Work for this question: Open Show Work Activate Windows

Answer 1

900 Mar-31 Depreciation expense - Equipment (300 x 3months) Accumulated Depreciation - Equipment (To record depreciation on equipment) 900 3600 Mar-31 Unearned Rent Revenue ( 10800/3) Rent Revenue (To record revenue earned) 3600 550 Mar-31 Interest Expense Interest payable (To record interest due on notes) 550 2610 Mar-31 Supplies expense (3400 - 790) Supplies (To record supplies used) 2610 1200 Mar-31 Insurance Expense (400 x 3months) Prepaid Insurance (To record insurance expired) 1200