The ledger of Perez Renal Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Credit Prepaid Insurance Supplies Equipment Accumulated Depreciation - Equipment Notes Payable $3,600 2,800 25,000 $8,400 20,000 Unearned Rent Revenue 10,200 60,000 Rent Revenue Salaries and Wages Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $400 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $900. 5. Insurance expires at the rate of $200 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 and Supplies Expense.

The ledger of Perez Renal Agency on March 31 of the current year includes the selected accounts, shown below, before adjusting entries have been prepared. Debit Credit Prepaid Insurance Supplies Equipment Accumulated Depreciation - Equipment Notes Payable $3,600 2,800 25,000 $8,400 20,000 Unearned Rent Revenue 10,200 60,000 Rent Revenue Salaries and Wages Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $400 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest of $500 is accrued on the notes payable. 4. Supplies on hand total $900. 5. Insurance expires at the rate of $200 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 and Supplies Expense.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 8SPB: UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Lewis Warehouse used the allowance method to record the...

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