On March 31, 2012 Easy Rental's Trial Balance is as
Prepaid Insurance. $14,400
Accumulated Depreciation. $5,400
Unearned Revenue. $9,600
Loan Payable. $20,000
Rent Revenue. $30,000
Salaries Expense. $14,000
The company closes their books monthly. An analysis of the accounts showed the following:
1. The equipment, purchased on January 1, 2011 is estimated to have a useful life of 4 years.
2. Two thirds of the unearned revenue is earned by the end of the month.
3. The loan payable has an interest rate of 6% which is paid monthly at the beginning of each month.
4. Supplies on hand totaled $850 on March 31.
5. The one year life insurance policy was purchased on March 1 for $14,400.
6.Income tax is estimated to be $2,200 for the month.
(A)Set up the T accounts and enter the beginning balances in the general ledger.
b) Prep the adjusting entries.
c) Post to T accounts and ďo an adjusted trial balance.