The general ledger of the Martinez Company on March 31, 2017 includes the following selected accounts before
adjusting entries have been prepared:
Debit Credit
Accounts Receivable
$17,760
Prepaid Insurance
3,860
Supplies
2,650
Equipment
27,900
Accumulated Depreciation-Equipment
$8,650
Notes Payable
24,400
Service Revenue
65,000
Salaries Expense
10,200
Telephone Expense
1,150
An analysis of the accounts shows the following:
1. Accounts due from customers but not yet billed total $1,500.
2. The note payable is a two-year note and has an interest rate of 5%. It was issued on July 1, 2016 and the
interest is due at the beginning of each quarter; the next interest payment is due April 1.
3. The telephone bill has not yet been received for the month. It is estimated that $190 is owed for the month (Use
Accounts Payable).
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account