Question

The ledger of Monty Corp.on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $3,760 3,960 25,500 $7,650 20,000 11,600 61,200 0 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $ 400 per month 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $ 340 is accrued on the notes payable. 4. Supplies on hand total $ 870 5. Insurance expires at the rate of $ 440 per month

Answer 1

	Journal Entries
Sr. No:	Date	Account Title and explanation	Debit	Credit
		Depreciation Expenses	$                        1,200
1	Mar, 31	To Accumulated Depreciation - Equipment		$                       1,200
2	Mar, 31	Unearned Revenue	$                        5,800
		To Rent Revenue (11,600 X 50%)		$                       5,800
3	Mar, 31	Interest Expenses	$                            340
		To Interest Payable		$                          340
4	Mar, 31	Supplies Expenses ($ 3,760 - $ 870)	$                        2,890
		To Supplies		$                       2,890
5	Mar, 31	Insurance expenses ($ 440 X 3 Months)	$                        1,320
		To Prepaid Insurance		$                       1,320