The ledger of Sheridan Company on March 31 of the current year includes the selected accounts below before adjusting entries have been prepared. Debit Credit
Supplies $9,000
Prepaid Insurance 10,800
Equipment 75,000
Accumulated Depreciation
—Equipment $25,200
Notes Payable 60,000
Unearned Rent Revenue 37,200
Rent Revenue 180,000
Interest Expense 0
Salaries and Wages Expense 42,000
An analysis of the accounts shows the following.
1. The equipment depreciates $840 per month.
2. Half of the unearned rent revenue was earned during the quarter.
3. Interest of $1,200 is accrued on the notes payable.
4. Supplies on hand total $2,550.
5. Insurance expires at the rate of $1,200 per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.