Question

The ledger of Blossom Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit Supplies $7,800 Prepaid Insurance 9,360 65,000 Equipment Accumulated Depreciation-Equipment $21,840 Notes Payable Unearned Rent Revenue 52,000 32,240 156,000 Rent Revenue Interest Expense Salaries and Wages Expense 36,400 An analysis of the accounts shows the following. 1. The equipment depreciates $728 per month. 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $1,040 is accrued on the notes payable. 4. Supplies on hand total $2,210. 5. Insurance expires at the rate of $1,040 per month. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (if no entry is required, select "No Entry for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Mar 31 2. Mar. 31 3. Mar. 31 4. Mar. 31 5. Mar 31

Answer 1

No	Date	Account titles and Explanation	Debit	Credit
1	Mar. 31	Depreciation expense	2,184
		Accumulated depreciation - Equipment		2,184
2.	Mar. 31	Unearned rent revenue	16,120
		Rent revenue		16,120
3.	Mar. 31	Interest expense	1,040
		Interest payable		1,040
4.	Mar. 31	Supplies expense	5,590
		Supplies		5,590
5.	Mar. 31	Insurance expense	3,120
		Prepaid insurance		3,120

1. Depreciation expense = 728 x 3

= $2,184

4. Supplies expense = Supplies beginning - Supplies ending

= 7,800-2,210

= $5,590

5. Quarterly insurance expense = 1,040 x 3

= $3,120

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