An analysis of the accounts shows the following.1. The equipment depreciates $300 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 $590.5. Insurance expires at the rate of $400 per month. The ledger of Cullumber Rental Agency on March 31 of the current year includes the selected accounts, shown below, beforeadjusting entries have been prepared.DebitCreditPrepaid Insurance$7,200Supplies2,600Equipment18,750Accumulated Depreciation-Equipment$ 8,500Notes Payable20,000Unearned Rent Revenue10,200Rent Revenue62,000Interest ExpenseSalaries and Wages Expense10,000 Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts areDepreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually.)No.DateAccount Titles and ExplanationDebitCredit1.Mar. 312.Mar. 313.Mar. 31Mar. 315.Mar. 314.

Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…

Answered: An analysis of the accounts shows the…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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An analysis of the accounts shows the following.

1.		The equipment depreciates $300 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 $590.
5.		Insurance expires at the rate of $400 per month.

The ledger of Cullumber Rental Agency on March 31 of the current year includes the selected accounts, shown below, before
adjusting entries have been prepared.
Debit
Credit
Prepaid Insurance
$7,200
Supplies
2,600
Equipment
18,750
Accumulated Depreciation-Equipment
$ 8,500
Notes Payable
20,000
Unearned Rent Revenue
10,200
Rent Revenue
62,000
Interest Expense
Salaries and Wages Expense
10,000

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. (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
Mar. 31
5.
Mar. 31
4.

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