E3-7 the ledger of perez rental . Agency in March 31 of the current year include the selected accounts shown below before adjusting entries have been prepared

1) Debit Depreciation expenses for $1,200; and Credit Accumulated depreciation for $1,200.

2) Debit Unearned Rent Revenue for $3,400; and Credit Rent Revenue for $3,400.

3) Debit interest expenses for $500; Credit Interest payable for $500.

4) Debit Supplies expenses a/c for $1,900; and Credit Cost of goods sold for $1,900.

5) Debit Insurance expense for $600; Credit Insurance prepaid for $600.

Step-by-step explanation:

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The explanation to the answer is now provided as follows:

The adjusting entries at March 31 will look as follows:

Perez Rental Agency

Date        Accounts Name                                         Dr($)            Cr($)    

Mar 31    Depreciation exp. ($400 * 3monts)           1,200

                Accumulated depreciation                                          1,200

             (To record depreciation expenses.)                                              

Mar 31     Unearned Rent Revenue                           3,400

                 Rent Revenue (1/3 * $10,200)                                    3,400

              (To record earned unearned rent revenue.)                                

Mar 31   Interest  expenses a/c                                    500

               Interest payable                                                              500

              (To record accrued interest on note payables.)                      

Mar 31    Supplies  expenses a/c ($2,800 - 900)      1,900

                 Supplies on hand                                                       1,900

              (To record supplies expenses.)                                                    

Mar 31     Insurance exp. ($200 * 3 months)               600

                 Prepaid insurance                                                         600

               (To record expired prepaid insurance.)