Sunday, 29 July 2012



 Exercise E3-7 

The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. 

Debits Credits 
Prepaid Insurance $3,600 
Supplies 2,800 
Equipment 25,000 
Accumulated 
Depreciation -Equipment 
$8,400 
Notes Payable 20,000 
Unearned Rent 9,900 
Rent Revenue 60,000 
Interest Expense -0- 
Wages Expense 14,000 

Instructions: 

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. 

Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.


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