Question

The ledger of Swifty Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. ials Debit Credit Prepaid Insurance $3,252 Supplies 2,604 Equipment 27,460 Accumulated Depreciation Equipment $7,905 Notes Payable 19,990 Unearned Rent Revenue 3,450 Rent Revenue 62,420 Interest Expense -0- Salaries and Wages Expense 14,690 An analysis of the accounts shows the following. 1. The equipment depreciates $263 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter. 3. Interest of $530 is accrued on the notes payable. 4. Supplies on hand total $678. 5. Insurance expires at the rate of $271 per month. 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 Expenses. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.)

Answer 1

Adjusting entry

date	account and explanation	Debit	Credit
Mar 31	Depreciation expense (263*3)	789
	Accumulated depreciation-Equipment		789
	(To record dep)
Mar 31	Unearned rent (3450/3)	1150
	rent revenue		1150
	(To record rent revenue)
Mar 31	Interest expense	530
	Interest payable		530
	(To record interest)
Mar 31	Supplies expense (2604-678)	1926
	Supplies		1926
	(To record supplies expense)
Mar 31	Insurance expense (271*3)	813
	Prepaid insurance		813
	(To record insurance expense)