Question

View Policies Current Attempt in Progress The ledger of Pharoah Company on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Credit Debit $ 10,800 3,300 25.000 Prepaid Insurance Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $ 8,600 25,000 11,100 62,000 0 10,000 An analysis of the accounts shows the following. 1. 2. 3. 4. The equipment depreciates $400 per month. One-third of the unearned rent revenue was earned during the quarter. Interest totaling $625 is accrued on the notes payable for the quarter. Supplies on hand total $760. Insurance expires at the rate of $600 per month. 5. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Denneslation. Ebensschansende bladstones Finansesdit.ccouns.ac.automaticalbindented

Answer 1

Solution ;

          Adjusting journal entries

No.	Date	Particulars	Debited	Credited
1	March 31	Depreciation expense (400 * 3)	1200
		To Accumulated depreciation		1200
		(Adjusting depreciation of equipment)
2	March 31	Unearned rent revenue (11100 / 3)	3700
		To Rent revenue		3700
		(Unearned rent revenue received)
3	March 31	Interest expense	625
		To Interest payable		625
		(Accrued notes payable)
4	March 31	Supplies expense (3300 - 760)	2540
		To Supplies		2540
		(Adjusting supplies expense)
5	March 31	Insurance expense (600 * 3)	1800
		To Prepaid insurance		1800
		(Insurance expired)