Question

EY Exercise 4-09 The ledger of Marigold Corp. on March 31 of the current year Indudes the selected below before adjusting ertes have been prepared Debit Credit Supplies $2,100 Prepaid Insurance 2,520 Equipment 17,500 Accumulated Depreciation-Eument $5,000 Notes Payable 14,000 Unearned Rent Revenue 8,680 Rent Reverse 42,000 Interest Expense Salaries and Wages Expense 9,800 An analysis of the account shows the following 1. The equipment depreciates $196 per month 2 Half of the neared rent revenue was earned during the quarter. 3 Interest of $280s crued on the notes payable. 4. Supplies on hand total $595. 5. nurance expires at there of $280 per month Prepare the adjusting entries at March 31, assuming that acusting entries are made quarterly. It ne entry is required, select "entry for the accounts and ante when the amount is entered. Do not indentally No. Date Account Titles and Explanation Debat 1. Mar 31 Depreciation Expense Accumulated Depreciation-topment 2. Mar 31 Unearned tent venue 3 Mar 31 treat Expense Interest Payable 4 Supores 21 MacBook Air DDD . 30 56 57 FI F3 * a $ 4 % 5 & 7 3 2 6 9 8 W E R T Y C

Answer 1

No.	Date	Account Title and Explanation	Debit	Credit
1.	Mar. 31	Depreciation expense	$588
		Accumulated depreciation- Equipment		$588
2.	Mar. 31	Unearned rent revenue	$4,340
		Rent revenue		$4,340
3.	Mar. 31	Interest expense	$280
		Interest payable		$280
4.	Mar. 31	Supplies expense	$1,505
		Supplies		$1,505
5.	Mar. 31	Insurance expense	$840
		Prepaid insurance		$840

1.

Depreciation expense per month = $196

Depreciation expense per quarter = 196 x 3

= $588

2.

Unearned rent revenue earned = 8,680 x 1/2

= $4,340

4.

Supplies expense = Unadjusted supplies - Ending supplies

= 2,100-595

= $1,505

5.

Insurance expense per month = $280

Insurance expense per quarter = 280 x 3

= $840

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