Question

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.

Answer 1

[AI-generated answer — Explain Bot]

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.