Question

Question 7 of 10 -11 The ledger of Metlock, Inc. on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Credit Debit $2,880 3,456 24,000 $8,064 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense 19.200 11,904 57.600 0 13,440 An analysis of the accounts shows the following, 1. 2. 3. The equipment depreciates $272 per month Half of the unearned rent revenue was earned during the quarter. Interest of $384 should be accrued on the notes payable. Supplies on hand total $816. Insurance expires at the rate of $384 per month 4 5. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account titles are automatically indented when the amount is entered. Do not indent manually)

Answer 1

1.	Depreciation Expense a/c	816
	Accumulated Depreciation-Equipment		816
2.	Unearned Rent Revenue a/c	5952
	Rent Revenue a/c		5952
3.	Interest Expense a/c	384
	Interest Payable		384
4.	Supplies Expense a/c	2064
	Supplies a/c		2064
5.	Insurance Expense a/c	1152
	Prepaid Insurance a/c		1152