Explanation:
The adjusting journal entries are shown below:
1. Depreciation Expense A/c Dr $
840 ($280 × 3 months for one quarter)
To Accumulated Depreciation - Equipment A/c $840
(Being depreciation expense is recorded)
2. Unearned Rent Revenue A/c Dr $6,200 ($12,400 ÷ 2)
To Rent Revenue A/c. $6,200
(Being half rent revenue earned is recorded)
3. Interest Expense A/c Dr $400
To Accrued Interest A/c $400
(Being accrued interest is recorded)
4. Supplies Expense A/c $2,150
To Supplies A/c $2,150
(Being the supplies expense is recorded)
The supplies expense is computed below
= Supplies balance - supplies on hand
= $3,000 - $850
= $2,150
5. Insurance Expense A/c Dr $1,200 ($400 × 3 months in one quarter)
To Prepaid Insurance A/c $1,200
(Being the insurance expense is recorded)
