posted by Michelle
The ledger of Piper Rental Agency on March 31 of the current year includes the following
selected accounts before adjusting entries have been prepared.
Prepaid Insurance $ 3,600
Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent 9,900
Rent Revenue 60,000
Interest Expense –0–
Wages Expense 14,000
An analysis of the accounts shows the following.
1. The equipment depreciates $400 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $700.
5. Insurance expires at the rate of $200 per month.
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly.
Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and
using 20x4 as the base year prepare a trend analysis for the following data and tell whether the results suggest a favorable or unfavorable trend. round your answers to one decimal place
20x6 20x5 20x4
net sales 158,000 136,000 112,000
accounts receivable (net)43,000 (20x6) 32,000 (20x5) 21,000 (20x4)