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.

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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
Supplies	2,800
Equipment	25,000
Accumulated Depreciation - Equip.		8,400
Notes payable		20,000
Unearned rent		9,900
Rent revenue		60,000
Interest expense	-
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.