The ledger of Wildhorse Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $3,348 Supplies 2,583 Equipment 22,940 Accumulated Depreciation-Equipment $8,172 Notes Payable 18,030 Unearned Rent Revenue 3,600 Rent Revenue 64.620 Interest Expense -0- Salaries and Wages Expense 13,670 An analysis of the accounts shows the following. 1. The equipment depreciates $259 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter. 3. Interest of $520 is accrued on the notes payable. 4. Supplies on hand total $640. 5. Insurance expires at the rate of $279 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 O for the amounts.)

The ledger of Wildhorse Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $3,348 Supplies 2,583 Equipment 22,940 Accumulated Depreciation-Equipment $8,172 Notes Payable 18,030 Unearned Rent Revenue 3,600 Rent Revenue 64.620 Interest Expense -0- Salaries and Wages Expense 13,670 An analysis of the accounts shows the following. 1. The equipment depreciates $259 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter. 3. Interest of $520 is accrued on the notes payable. 4. Supplies on hand total $640. 5. Insurance expires at the rate of $279 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 O for the amounts.)

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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