Question

The ledger of Sheridan Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

		Debit		Credit
Supplies		$3,740
Prepaid Insurance		1,890
Equipment		28,300
Accumulated Depreciation—Equipment				$8,490
Notes Payable				18,500
Unearned Rent Revenue				11,400
Rent Revenue				61,600
Interest Expense		0
Salaries and Wages Expense		12,600

An analysis of the accounts shows the following.

1.		The equipment depreciates $280 per month.
2.		Half of the unearned rent revenue was earned during the quarter.
3.		Interest of $550 is accrued on the notes payable.
4.		Supplies on hand total $910.
5.		Insurance expires at the rate of $210 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Mar. 31
2.	Mar. 31
3.	Mar. 31
4.	Mar. 31
5.	Mar. 31

Answer 1

No.	Date	Account Tiles and Explanation	Debit	Credit
1	Mar-31	Depreciation expense ($280 per month * 3 months)	$840
		Accumulated depreciation - equipment		$840
		(Depreciation expense charged on equipment for a quarter)
2	Mar-31	Unearned rent revenue ($11,400 / 2)	$5,700
		Rent revenue		$5,700
		(Rent revenue earned during the quarter recorded)
3	Mar-31	Interest expense	$550
		Interest payable		$550
		(Interest accrued on notes payable recorded)
4	Mar-31	Supplies expense ($3,740 - $910)	$2,830
		Supplies		$2,830
		(Being supplies utilised recorded as an expense)
5	Mar-31	Insurance expense ($210 per month x 3 months)	$630
		Prepaid insurance		$630
		(Being insurance expired during the quarter recorded as expense)