An analysis of the accounts shows the following. 1. The equipment depreciates $248 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter. 3. Interest of $550 is accrued on the notes payable. 4. Supplies on hand total $637. 5. Insurance expires at the rate of $324 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 0 for the amounts.)

Question

Tania Cantrell

Business

19 January, 18:52

An analysis of the accounts shows the following. 1. The equipment depreciates $248 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter. 3. Interest of $550 is accrued on the notes payable. 4. Supplies on hand total $637. 5. Insurance expires at the rate of $324 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 0 for the amounts.)

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Odin · Answer 1

Answer and Explanation:

Date Account Title and Explanation Debit Credit

1. Depreciation Expense $248*3 $744

Accumulate Deprecation $248*3 $744

(deprecation of equipment per month for a quarter)

2. No Entry

(sufficient information not given)

3. Interest expenses $550

Interest Payable $550

(Interest pay on notes payable)

4. Supplies Expenses $637

Supplier $637

(Purchase on supply)

5. Insurance Expense $324*3 $972

Prepaid insurance $324*3 $972

(on insurance premium pay)