Adjusting Entries for Account Data
Not what you're looking for?
Prepare adjusting entries from selected account data.
The ledger of Welch Rental Agency Inc. on March 31 of the current year includes the following selected accounts before 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 12,000
Rent revenue 60,000
Interest expense -0-
Wages expense 14,000
An analysis of the accounts shows the following.
1) The equipment depreciates $300 per month.
2) One-third of the unearned rent was earned during the quarter.
3) Interest of $500 is accrued on the notes payable.
4) Supplies on hand total $1,100.
5) Insurance expires at the rate of $200 per month.
Instructions:
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 Expense.
Purchase this Solution
Solution Summary
This solution involves adjusting entries for account data.
Solution Preview
March
31 Depreciation expense 900
Accumulated Depreciation 900
31 Unearned rent 4000
Rent 4000
31 Interest Payble 500
...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.