Question

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

		Debit		Credit
Supplies		$2,100
Prepaid Insurance		2,520
Equipment		17,500
Accumulated Depreciation—Equipment				$5,880
Notes Payable				14,000
Unearned Rent Revenue				8,680
Rent Revenue				42,000
Interest Expense		0
Salaries and Wages Expense		9,800

An analysis of the accounts shows the following.

1.		The equipment depreciates $196 per month.
2.		Half of the unearned rent revenue was earned during the quarter.
3.		Interest of $280 is accrued on the notes payable.
4.		Supplies on hand total $595.
5.		Insurance expires at the rate of $280 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	enter an account title to record the first transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the first transaction	Enter a debit amount	Enter a credit amount
2.	Mar. 31	enter an account title to record the second transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the second transaction	Enter a debit amount	Enter a credit amount
3.	Mar. 31	enter an account title to record the third transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the third transaction	Enter a debit amount	Enter a credit amount
4.	Mar. 31	enter an account title to record the fourth transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the fourth transaction	Enter a debit amount	Enter a credit amount
5.	Mar. 31	enter an account title to record the fifth transaction	Enter a debit amount	Enter a credit amount
		enter an account title to record the fifth transaction	Enter a debit amount	Enter a credit amount

Answer 1

Sr. No:	Date	Account Titles and explanation	Debit	Credit
1	Mar, 31	Depreciation Expenses (196 X 3)	$ 588
		To Accumulated Depreciation - Equipment		$ 588
2	Mar, 31	Unearned Rent Revenue	$ 4,340
		To Rent Revenue (8,680 X 50%)		$ 4,340
3	Mar, 31	Interest Expenses	$ 280
		To Interest Payable		$ 280
4	Mar, 31	Supplies Expenses ($ 2,100 - $ 595)	$ 1,505
		To Supplies		$ 1,505
5	Mar, 31	Insurance expenses ($ 280 X 3 Months)	$ 840
		To Prepaid Insurance		$ 840