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Prepare year-end adjusting entries

The ledger of Smith Rental Agency of June 30 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 Revenue 9,300
Rent Revenue 60,000
Interest Expense 0
Wage Expense $14,000
Totals: $45,400 $97,700

An analysis of the accounts shows the following:

1. The equipment depreciation per month is: $250
2. One-half of the unearned rent has been earned.
3. Interest accrued for one month on notes payable is: $100
4. Supplies on hand total: $650
5. The monthly insurance expiration rate is: $300

Instructions:

Prepare the adjusting entries at June 30, assuming that no adjusting entries have been made this year. Additional accounts are:

Depreciation Expense Interest Payable
Insurance Expense Supplies Expense

1 Account Title Amount
Account Title Amount
Text / Memo Line

2 Account Title Amount
Account Title Amount
Text / Memo Line

3 Account Title Amount
Account Title Amount
Text / Memo Line

4 Account Title Amount
Account Title Amount
Text / Memo Line

5 Account Title Amount
Account Title Amount
Text / Memo Line

Solution Preview

1.
Depreciation expense 250
Accumulated depreciation 250
2.
Unearned rent ...

$2.19