Answer:
Explanation:
The adjusting entries are shown below:
1. Depreciation Expense A/c Dr $1,008 ($336 × 3 month)
To Accumulated Depreciation A/c
(Being depreciation expense is adjusted)
As quarter includes 3 months so we multiply it with the depreciation expense.
2. Unearned rent revenue A/c Dr $7,440
To Rent revenue $7,440
(Being unearned rent revenue is adjusted)
3. Interest expense A/c Dr $490
To Accrued interest payable A/c $490
(Being accrued interest is recorded on the notes payable)
4. Supplies Expense A/c Dr $2,575 ($3,600 - $1,020)
To Office supplies $2,575
(Being supplies are adjusted)
5. Insurance expense A/c Dr $1,440 ($480 × 3 month)
To Prepaid insurance A/c $1,440
(Being prepaid insurance is adjusted)