ACC410 E3-5 - E3-5 Page 114 The ledger of Chopin Rental...

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Unformatted text preview: E3-5 Page 114 The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Prepaid Insurance Supplies Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Wage Expense Totals: Debit $3,600 2,800 25,000 Credit $8,400 20,000 6,300 60,000 0 $14,000 $45,400 $94,700 An analysis of the accounts shows the following: 1. The equipment depreciation per month is: 2. One-third of the unearned rent was earned during the quarter. 3. Interest accrued on Notes Payable 4. Supplies on hand total: 5. The monthly insurance expiration rate is: $250 $500 $650 $300 Instructions: Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: (Omit explanations.) Depreciation Expense Insurance Expense 1 Interest Payable Supplies Expense Depreciation Expense ($250 per month * 3 months) 750 Accumulated Depreciation - Equipment End of quarter adjusting entry - Depreciation Expense - Equipment Unearned Rent Revenue ($6,300 / 3) Rent Revenue End of quarter adjusting entry - Unearned Rent Revenue 2,100 750 2 2,100 3 Interest Expense 500 Interest Payable End of quarter adjusting entry - Interest Expense / Interest Payable Supplies Expense ($2,800 - $650) 2,150 Supplies End of quarter adjusting entry - Supplies Expense / Supplies Insurance Expense ($300 per month * 3 months) 900 Prepaid Insurance End of quarter adjusting entry - Insurance Expense / Prepaid Insurance 500 4 2,150 5 900 1 2 ...
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This note was uploaded on 10/27/2010 for the course FIN 82571 taught by Professor Sharp during the Fall '10 term at CSU Sacramento.

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ACC410 E3-5 - E3-5 Page 114 The ledger of Chopin Rental...

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