Question

The ledger of Riverbed Corp. on March 31 of the current year includes the following selected accounts before quarterly adjusting entries have been prepared: Credit Debit $3,360 2.920 25,650 157.000 Prepaid Insurance Supplies Equipment FV-OCI Investments Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $7,320 20,000 8.250 58,800 -0- 14,700 An analysis of the accounts shows the following: 1. 2. 3. 4. 5. The equipment depreciation is $305 per month. One half of the unearned rent was earned during the quarter. Interest of $300 has accrued on the notes payable. Supplies on hand total $960. Insurance expires at the rate of $280 per month. The FV-OCI Investments were purchased for $157,000 on March 1. No investments were purchased or sold after that date. The fair value on March 31 was $177,000. 6.

Answer 1

No	Accounts titles and explanation	Debit	Credit
1.	Depreciation expense a/c	$915
	Accumulated depreciation		915
	(amount = $305 *3 months)
2.	Unearned rent revenue	4,125
	Rent revenue		4,125
	(amount = 8,250*1/2 =>4,125)
3	Interest expense	300
	Accrued interest payable		300
4	Supplies expense	1,960
	supplies		1,960
	(amount = 2920 -960 in hand)=>1,960
5	Insurance expense	840
	Prepaid insurance		840
	(amount = $280 * 3 months =>840)
6	FV -OCI investment	20,000
	Unrealised Gain or loss- OCI		20,000
	(amount = $177,000-157,000=>$20,000)