E3-5 (L03) following selected accounits before adjusting entries have been prepa
ID: 2342878 • Letter: E
Question
E3-5 (L03) following selected accounits before adjusting entries have been prepared. EXCEL (Adjusting Entries) The ledger of Duggan Rental Agency on Manch 31 of the current year includes the Debit Prepaid Iraueance S 3,600 2.800 s 8,400 20,000 Notes Payable Uneamed Rent Reveue Rent Revenue Interest Expense Salaries and Wages Expense 14.000 An analysis of the accounts shows the following 1. The equipment depreciates $250 per month. 2. One-third of the uneamed rent was recognized as revenue during the quarter Interest of $500 is accrued on the notes payable 4. Supplies on hand total $850 S. Insurance exptres 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 Depre- ciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. (Omit explanations.) operations, the following transactions occurred 1. Performed services for patients who had dental plan insurance. At January 31, $750 of such services was performed but not yet billed to the insurance companies 2 Utlity expenses incurred but not paid prior to January 31 totaled s520 3. Purchased dental equipment on January 1 for $80,000, paying s20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is 5500 per month. 4 Purchased a one-year malpractice insurance policy on January 1 for $12,000 5. Purchased $1,600 of dental supplies. On January 31, determined that $500 of supplies were on hand Instruetions Prepare the adjusting entries on January 31. (Omit explanations.) Account titles are Accumulated Depreciation-Equipment Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Inberest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expenses, and Accounts Payable.Explanation / Answer
3) Adjusting entry :
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Date account and explanation debit credit mar 31 Depreciation expense (250*3) 750 Accumlated depreciation-equipment 750 (To record depreciation) Mar 31 Unearned rent (9300/3) 3100 Rent revenue 3100 (To record rent revenue) mar 31 Interest expense 500 Interest payable 500 (To record accured interest) mar 31 Supplies expense (2800-850) 1950 Supplies 1950 (To record supplies expense) Mar 31 Insurance expense (300*3) 900 Prepaid insurance 900 (To record insurance expense)Related Questions
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