The ledger of Duggan Rental Agency on March 31

E3-5 The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

	Debit	Credit
Prepaid Insurance	$3,600
Supplies	2,800
Equipment	25,000
Accumulated Depreciation - Equipment		$8,400
Notes Payable		20,000
Unearned Rent Revenue		9,300
Rent Revenue		60,000
Interest Expense	0
Salaries and Wage Expense	14,000
Totals:	$45,400	$97,700

An analysis of the accounts shows the following:

1. The equipment depreciation $250 per month is:

2. One-third of the unearned rent was earned during the quarter.

3. Interest of $500 is accrued for the month on notes payable is:

4. Supplies on hand total $850

5. insurance expires at the rate of $300 per month

Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, Supplies Expense. (Omit explanations.)

TUTORIAL PREVIEW

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, Supplies Expense. (Omit explanations.)

1	Depreciation Expense ($250 per month × 3 months)	750
	Accumulated Depreciation - Equipment		750
	End of quarter adjusting entry - Depreciation Expense / Equipment

File name E3-5 Duggan Rental.xls  File type: xls  PRICE:$5