Question

Please help with the following, I've done most of it but i only have one try left and wanna make sure they are correct

The ledger of Larkspur, Inc. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit $3,460 1,800 24,100 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $7,230 19,500 10,850 63,300 0 16,000 An analysis of the accounts shows the following. 1. The equipment depreciates 290 per month 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $ 310 is accrued on the notes payable 4. Supplies on hand total $ 860. 5. Insurance expires at the rate of $ 200 per month.

Answer 1

Solution:

Journal Entries - Larkspur Inc.
Event	Date	Particulars	Debit	Credit
1	31-Mar	Depreication expense Dr	$870.00
		To Accumulated Depreciation - Equipment		$870.00
		(To record depreciation expense)
2	31-Mar	Unearned rent revenue Dr ($10,850*50%)	$5,425.00
		To Rent revenue		$5,425.00
		(To record rent revenue)
3	31-Mar	Interest expense Dr	$310.00
		To Interest payable		$310.00
		(To record interest expense accrued)
4	31-Mar	Supplies expense Dr	$2,600.00
		To Supplies		$2,600.00
		(To record supplies expense)
5	31-Mar	Insurance expense Dr	$600.00
		To Prepaid insurance		$600.00
		(To record insurance expense)