Question

ent CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 4-9 The ledger of Pina Colada Corp. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit $3,140 3,960 24,300 Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue $7,290 19,900 10,750 61,200 Interest Expense Salaries and Wages Expense 14,500 An analysis of the accounts shows the following The equipment depreciates $290 per month. Half of the unearned rent revenue was earned during the quarter Interest of $490 is accrued on the notes payable. 1. 2. 3. 4. Supplies on hand total $890. 5. Insurance expires at the rate of $440 per month. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (f no entry is required, select "No Entry" for the account tities and 23 名0 岩F5 -" F6 8

Answer 1

Mar-31	Depreciation expense ($290*3)	$     870
	Accumulated depreciation - Equipment		$     870
	(To record depreciation expenses)
Mar-31	Unearned rent revenue ($10,750/2)	$ 5,375
	Rent revenue		$ 5,375
	(To record rent revenue earned)
Mar-31	Interest expenses	$     490
	Interest payable		$     490
	(To record interest on notes)
Mar-31	Supplies expenses ($3,140-$890)	$ 2,250
	Supplies		$ 2,250
	(To record supplies expenses)
Mar-31	Insurance expenses ($440*3)	$ 1,320
	Prepaid insurance		$ 1,320
	(To record insurance expenses)