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

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

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