Answer:
Nash Rental Agency
The Journal General
Adjusting Entries
March 31
1. Depreciation Expense $ 1848 Dr.
Accumulated Depreciation $ 1848 Cr.
1. The equipment depreciates $616 per month. $616 * 3= $ 1848
Unearned Revenue $ 2040
Revenue Earned $ 2040
2. Half of the unearned rent revenue was earned during the quarter.
= 4080/2= $ 2040
3. Interest Expense $220 Dr.
Interest Payable $ 220 Cr.
3. Interest of $880 is accrued on the notes payable.
Interest Payable $ 880/12 *3= $ 220
4. Supplies Expense $ 723 Dr.
Supplies Account $ 723 Cr.
4. Supplies on hand total $1,870. $ 2593- $ 1870= $ 723 Supplies were used.
5. Insurance Expenses $ 2460 Dr.
Prepaid Insurance $ 2460 Cr.
5. Insurance expires at the rate of $880 per month.
Insurance Expense $880*3= $2460 for the quarter
