The ledger of Herrera, Inc. on March 31, 2015, includes the following selected accounts before adjusting entries.

	Debit	Credit
Prepaid Insurance	2,481
Supplies	2,831
Equipment	32,578
Unearned Service Revenue		9,900

An analysis of the accounts shows the following.

1.		Insurance expires at the rate of $355 per month.
2.		Supplies on hand total $1,020.
3.		The equipment depreciates $461 per month.
4.		During March, services were performed for two-fifths of the unearned service revenue.

Prepare the adjusting entries for the month of March.

Solutions

Expert Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.


Event	Account	Debit	Credit

1	Insurance Expense	$ 355
	Prepaid Insurance		$ 355

2	Supplies Expense ($2,831-$1,020)	$ 1,811
	Supplies		$ 1,811

3	Depreciation Expense	$ 461
	Accumulated Depreciation-Equipment		$ 461

4	Unearned Service Revenue ($9,900*2/5)	$ 3,960
	Service Revenue		$ 3,960

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The ledger of Tamarisk, Inc. on March 31, 2017, includes the following selected accounts before adjusting...

The ledger of Tamarisk, Inc. on March 31, 2017, includes the following selected accounts before adjusting entries. Debit Credit Supplies 3,600 Prepaid Insurance 2,400 Equipment 33,000 Unearned Service Revenue 11,400 An analysis of the accounts shows the following. 1. Insurance expires at the rate of $300 per month. 2. Supplies on hand total $935. 3. The equipment depreciates $220 per month. 4. During March, services were performed for two-fifths of the unearned service revenue. Prepare the adjusting entries for the...

The ledger of Hammond Company, on March 31, 2020, includes these selected accounts before adjusting entries...

The ledger of Hammond Company, on March 31, 2020, includes these selected accounts before adjusting entries are prepared. Debit Credit Prepaid Insurance RM 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment RM5,000 Unearned Service Revenue 9,200 An analysis of the accounts shows the following. 1.Insurance expires at the rate of RM100 per month. 2.Supplies on hand total RM800. 3.The equipment depreciates RM200 a month. 4.During March, services were performed for one-half of the unearned...

Adjusting entries – deferrals: The ledger of Comfort realty on March 31, 2018 includes following selected...

Adjusting entries – deferrals: The ledger of Comfort realty on March 31, 2018 includes following selected accounts before the adjusting entries. Debit Credit Prepaid Insurance 3,600 Office supplies 2,800 Office equipment 25,000 Accumulated Depreciation – office equipment 5,000 Unearned revenue 9,200 An analysis of the account shows the following: Insurance expires at rate of $100 per month Supplies on hand total $800 The office equipment depreciates $200 per month One-half of the unearned revenue was earned in March Prepare the...

The ledger of Marco Rentals on 30 June 2019 includes the following selected accounts before adjusting...

The ledger of Marco Rentals on 30 June 2019 includes the following selected accounts before adjusting entries have been prepared: Debit $ Credit $ Prepaid insurance 28080 Supplies 16800 Equipment 195000 Accumulated depreciation—equipment 39000 Bank loan 156000 Rent revenue received in advance 72540 Rent revenue 468000 Wages expense 109200 An analysis of the accounts shows the following adjustments that need to be made: The equipment depreciates $3250 per month. The rent revenue received in advance was for 9 months commencing...

The ledger of Novak Corp. on March 31 of the current year includes the selected accounts...

The ledger of Novak Corp. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit Supplies $8,400 Prepaid Insurance 10,080 Equipment 70,000 Accumulated Depreciation—Equipment $23,520 Notes Payable 56,000 Unearned Rent Revenue 34,720 Rent Revenue 168,000 Interest Expense 0 Salaries and Wages Expense 39,200 An analysis of the accounts shows the following. 1. The equipment depreciates $784 per month. 2. Half of the unearned rent revenue was earned during the quarter....

The ledger of Oriole Company on March 31 of the current year includes the selected accounts...

The ledger of Oriole Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit Supplies $6,900 Prepaid Insurance 8,280 Equipment 57,500 Accumulated Depreciation—Equipment $19,320 Notes Payable 46,000 Unearned Rent Revenue 28,520 Rent Revenue 138,000 Interest Expense 0 Salaries and Wages Expense 32,200 An analysis of the accounts shows the following. 1. The equipment depreciates $644 per month. 2. Half of the unearned rent revenue was earned during the quarter....

The ledger of Metlock, Inc. on March 31 of the current yearincludes the selected accounts...

The ledger of Metlock, Inc. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.DebitCreditSupplies$3,900Prepaid Insurance4,680Equipment32,500Accumulated Depreciation—Equipment$10,920Notes Payable26,000Unearned Rent Revenue16,120Rent Revenue78,000Interest Expense0Salaries and Wages Expense18,200An analysis of the accounts shows the following.1.The equipment depreciates $364 per month.2.Half of the unearned rent revenue was earned during the quarter.3.Interest of $520 is accrued on the notes payable.4.Supplies on hand total $1,105.5.Insurance expires at the rate of $520 per month.Prepare the adjusting entries at March...

The ledger of Marigold Corp. on March 31 of the current year includes the following selected...

The ledger of Marigold Corp. on March 31 of the current year includes the following selected accounts before quarterly adjusting entries have been prepared: Prepaid Insurance $3,540 Supplies 3,000 Equipment 24,150 FV-OCI Investments 159,000 Accumulated Depreciation—Equipment $9,600 Notes Payable 20,800 Unearned Rent Revenue 8,300 Rent Revenue 60,700 Interest Expense -0- Salaries and Wages Expense 13,000 An analysis of the accounts shows the following: 1. The equipment depreciation is $400 per month. 2. One half of the unearned rent was earned...

The ledger of Perez Rental Agency on March 31 of the current year includes the selected...

The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 10,200 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $400 per month. 2. One-third of the unearned rent revenue...

Dragnet Corporation has the following selected accounts at December 31, 2018 after posting adjusting entries: Accounts...

Dragnet Corporation has the following selected accounts at December 31, 2018 after posting adjusting entries: Accounts Payable..... 56,400 Accumulated Depreciation - Equipment ... 24,000 Accounts Receivable ... 67,500 Bank Loan Payable, 3-month ... 165,000 GST Payable ... 14,000 Notes Payable, due 2025, 4% ... 85,000 Employee Benefits Expense ... 8,000 Interest Payable ... 6,600 Mortgage Payable ... 425,000 Salaries Payable ... 23,000 PART A: Prepare the current liability section of Dragnet Corporation's statement of financial position, assuming $25,000 of the...

Subjects