Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Round all answers to 0 decimal places.)
The equipment depreciates at $250 per month.
To prepare the adjusting entries at March 31, you need to calculate the depreciation expense for three months (January, February, and March). Here's how you can do it:
1. Determine the monthly depreciation expense: Since the equipment depreciates at $250 per month, the monthly depreciation expense can be calculated as $250.
2. Calculate the total depreciation expense for three months: Multiply the monthly depreciation expense by the number of months. In this case, multiply $250 by 3, which gives you a total depreciation expense of $750.
3. Prepare the adjusting entry: The adjusting entry for depreciation expense is typically a debit to Depreciation Expense and a credit to Accumulated Depreciation. In this case, since the equipment is depreciating, you will debit Depreciation Expense for $750 and credit Accumulated Depreciation for $750.
So, the adjusting entry at March 31 for the equipment's depreciation expense would be:
Debit: Depreciation Expense $750
Credit: Accumulated Depreciation $750
Please remember to adjust the amounts or adjust the accounts accordingly if there are any specific account titles provided in the question.