Question

Question 3 of 5 < > -/1 The ledger of Blossom Rental Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Credit Debit $ 1,800 2,600 18,750 Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $ 8,000 20,000 9,000 58,000 0 10,000 An analysis of the accounts shows the following. 1. 2. 3. The equipment depreciates $300 per month. One-third of the unearned rent revenue was earned during the quarter. Interest of $500 is accrued on the notes payable. Supplies on hand total $500. Insurance expires at the rate of $100 per month. 4. 5. 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)
Helped needed please. (with explanation of each entry)

Answer 1

Adjusting Enteries in the books Blossom Rental Agency at 31 March :-

S.no.	Date	Account titles and Explanation	Debit($)	Credit($)
1.	31 Mar	Depreciation Expense A/c...................Dr To Acc Depreciation Equipments A/c ( $ 300 * 3 months)	900	900
2.	31 Mar	Unearned Rent Revenue A/c..............Dr. To Rent Revenue A/c ( 9000 * 1/3 )	3000	3000
3.	31 Mar	Interest Expense A/c.........................Dr. To Interest Payable A/c	500	500
4.	31 Mar	Supplies Expense A/c ......................Dr. To Supplies A/c Supplies - Supplies used or Expenses( 2600 - 2100 = 500)	2100	2100
5.	31 Mar	Insurance Expense A/c....................Dr To Prepaid insurance A/c As we already paid insurance but become due of 3 Months at 31 Mar, thus Insurance Expense is $100 * 3 Months	300	300