The ledger of Beckett Rental Agency on March 31 of the current year includes the

Question

The ledger of Beckett Rental Agency on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

An analysis of the accounts shows the following.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

Debit Credit Supplies $ 3,290 Prepaid Insurance 4,320 Equipment 26,900 Accumulated Depreciation—Equipment $ 8,070 Notes Payable 20,500 Unearned Rent Revenue 11,180 Rent Revenue 60,300 Interest Expense 0 Salaries and Wages Expense 13,100

Explanation / Answer

Adjusting Entries 1 Depreciation Dr 870 (290*3) 1 quarter To Equipment 870 2 Unearned Rent Dr 5590 To Rent Revenue 5590(11180/2) 3 Interest Dr 510    To Interest Accrued but not paid 510 4 No Entry 5 No entry

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