The ledger of Piper RentalAgency on March 31 of the current year includes the fo
ID: 2433646 • Letter: T
Question
The ledger of Piper RentalAgency on March 31 of the current year includes the followingselected accounts before adjusting entries have been prepared.Debit Credit Prepaid Insurance
$3,600 Supplies 2,800 Equipment 25,000 Accummulated
Depreciation-Equipment
$8,400
Notes Payable
20,000
Unearned Rent Revenue
9,900
Rent Revenue
60,000
Interest Expense
-0-
Wages Expense
14,000
An analysis of the accounts shows thefollowing.
1. The equipment depreciates $400 per month.
2. One-third of the unearned rent revenue was earned during thequarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on the hand total $700.
5. Insurance expires at the rate of $200 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjustingentries are made quarterly. Additional accountsare: Depreciation Expense, Insurance Expense, Interest Payable, andSupplies Expense.
Please Show All Work, Thank You
Debit Credit Prepaid Insurance
$3,600 Supplies 2,800 Equipment 25,000 Accummulated
Depreciation-Equipment
$8,400
Notes Payable
20,000
Unearned Rent Revenue
9,900
Rent Revenue
60,000
Interest Expense
-0-
Wages Expense
14,000