Question

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.
3.		Interest of $920 is accrued on the notes payable.
4.		Supplies on hand total $1,955.
5.		Insurance expires at the rate of $920 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.

Answer 1

Answer
No.	Account Titles & Explanation	Debit	Credit
1	Depreciation expense	$       1,932		644*3
	Accumulated Depreciation		$       1,932
	(To record depreciation expense)
2	Unearned rent revenue	$     14,260		28520/2
	Rent revenue		$     14,260
	(To record revenue earned)
3	Interest expenses	$          920
	Interest payable		$          920
	(To record interest payable recorded)
4	Supplies expenses	$       4,945		6900-1955
	Supplies		$       4,945
	(To record supplies expense)
5	Insurance expenses	$       2,760		920*3
	Prepaid insurance		$       2,760
	(To record insurance expense recorded)