Question

Exercise 4-09 The ledger of Blue Spruce Corp. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Credit Debit $7,500 9,000 62,500 Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $21,000 50,000 31,000 150,000 0 35,000 An analysis of the accounts shows the following. 1. The equipment depreciates $ 700 per month. 2. Half of the unearned rent revenue was earned during the quarter. 3. Interest of $1,000 is accrued on the notes payable. 4. Supplies on hand total $2,125. 5. Insurance expires at the rate of $1,000 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 o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answer 1

Answer:

No.	Account Titles & Explanation	Debit	Credit
1	Depreciation expense (700*3)	2,100
	Accumulated Depreciation		2,100
2	Unearned rent revenue (31,000/2)	15,500
	Rent revenue		15,500
3	Interest expenses	1,000
	Interest payable		1,000
4	Supplies expenses (7,500-2,125)	5,375
	Supplies		5,375
5	Insurance expenses (1,000*3)	3,000
	Prepaid insurance		3,000