Question

yedi The ledger of Tamarisk, Inc. on March 31 of the been prepared. Credit Debit $3,870 3,780 25,800 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $7,740 21,600 10,650 60,500 0 12,100 An analysis of the accounts shows the following. 1. 2. 3. 4. The equipment depreciates $360 per month. Half of the unearned rent revenue was earned during the quarter. Interest of $470 is accrued on the notes payable. Supplies on hand total $940. Insurance expires at the rate of $420 per month. 5.

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Answer 1

Solution:

Transaction No	General journal	Debit	Credit
1	Depreciation expense a/c Dr	1080
	To accumulated depreciaion - equipment a/c		1080
2	Unearned rent a/c Dr (10650 x 0.5)	5325
	To Rent revenue a/c		5325
3	Interest expense a/c Dr	470
	To interest payable a/c		470
4	Supplies expense a/c Dr	2,930
	To supplies a/c		2,930
5	Insurance expense a/c Dr	1260
	To prepaid insurance a/c		1260