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The ledger of Larkspur, Inc. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.  Debit CreditSupplies $5,400  Prepaid Insurance 6,480  Equipment 45,000  Accumulated Depreciation—Equipment   $15,120Notes Payable   36,000Unearned Rent Revenue   22,320Rent Revenue   108,000Interest Expense 0  Salaries and Wages Expense 25,200  An analysis of the accounts shows the following.1. The equipment depreciates $504 per month.2. Half of the unearned rent revenue was earned during the quarter.3. Interest of $720 is accrued on the notes payable.4. Supplies on hand total $1,530.5. Insurance expires at the rate of $720 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)No.DateAccount Titles and ExplanationDebitCredit1.Mar. 31enter an account title to record the first transactionEnter a debit amountEnter a credit amount  enter an account title to record the first transactionEnter a debit amountEnter a credit amount2.Mar. 31enter an account title to record the second transactionEnter a debit amountEnter a credit amount  enter an account title to record the second transactionEnter a debit amountEnter a credit amount3.Mar. 31enter an account title to record the third transactionEnter a debit amountEnter a credit amount  enter an account title to record the third transactionEnter a debit amountEnter a credit amount4.Mar. 31enter an account title to record the fourth transactionEnter a debit amountEnter a credit amount  enter an account title to record the fourth transactionEnter a debit amountEnter a credit amount5.Mar. 31enter an account title to record the fifth transactionEnter a debit amountEnter a credit amount  enter an account title to record the fifth transactionEnter a debit amountEnter a credit amount

Question

The ledger of Larkspur, Inc. on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared.

    Debit   Credit
Supplies
  $5,400    
Prepaid Insurance
  6,480    
Equipment
  45,000    
Accumulated Depreciation—Equipment
      $15,120
Notes Payable
      36,000
Unearned Rent Revenue
      22,320
Rent Revenue
      108,000
Interest Expense
  0    
Salaries and Wages Expense
  25,200    


An analysis of the accounts shows the following.

1.   The equipment depreciates $504 per month.
2.   Half of the unearned rent revenue was earned during the quarter.
3.   Interest of $720 is accrued on the notes payable.
4.   Supplies on hand total $1,530.
5.   Insurance expires at the rate of $720 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.
Date
Account Titles and Explanation
Debit
Credit
1.
Mar. 31
enter an account title to record the first transaction
Enter a debit amount
Enter a credit amount
   
enter an account title to record the first transaction
Enter a debit amount
Enter a credit amount
2.
Mar. 31
enter an account title to record the second transaction
Enter a debit amount
Enter a credit amount
   
enter an account title to record the second transaction
Enter a debit amount
Enter a credit amount
3.
Mar. 31
enter an account title to record the third transaction
Enter a debit amount
Enter a credit amount
   
enter an account title to record the third transaction
Enter a debit amount
Enter a credit amount
4.
Mar. 31
enter an account title to record the fourth transaction
Enter a debit amount
Enter a credit amount
   
enter an account title to record the fourth transaction
Enter a debit amount
Enter a credit amount
5.
Mar. 31
enter an account title to record the fifth transaction
Enter a debit amount
Enter a credit amount
   
enter an account title to record the fifth transaction
Enter a debit amount
Enter a credit amount
check_circleAnswer
Step 1

Adjusting journals are as follows:...

Debit (S) Credit (S)
Accounts titles and Explanation
March 31 Depreciation expense ($504 x 3 Months)
Accumulated depreciation - Equipment
|(To record the Depreciation expense)
Date
1
1512
1512
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Debit (S) Credit (S) Accounts titles and Explanation March 31 Depreciation expense ($504 x 3 Months) Accumulated depreciation - Equipment |(To record the Depreciation expense) Date 1 1512 1512

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