The following informationis drawn from royal industries cash budgetcash receipts 40,000beg, cash bal. 10,000cash payment 48,000desired ending cash cushion 5,000if there is a cash shortage, the company borrows money. if a surplus occurs funds are used to repay loans or ot invest in short-term assests. the company had no debt before january 1st. the amounted "needed" to borrow or the amount "available" for repayment of debt in januar would bea. 2000 availableb. 3,000 neededc. 7000 availabled 13,000 neededif there is a cash shortage, the company borrows money. if a surplus occurs funds are used to repay loans or to invest in short-term assests. all borrowing, repayments, and interest payments occur on the last day of themonth. the interest rate is 1% per month. the amount of interest expense incurred for january is: a. 20b. $30c. $50d. none of the aoveb. the amount of interest paid in february would bea. $50b. $300c. $500d. $30

The ledger of laurie rental agency on march 31 of the current year includes the following selected accounts before adjusting entries have been prepared. debit credit prepaid insurance $ 5,400 supplies $ 4,500 equipment 40,000 accumulated depreciation—equipment $12,600 notes payable 25,000 unearned rent revenue 11,100 rent revenue 90,000 interest expense –0– salaries and wages expense 20,000 an analysis of the accounts shows the following. 1. the equipment depreciates $600 per month. 2. two-thirds of the unearned rent revenue was earned during the quarter. 3. the note payable is dated january 1 and bears 12% interest. 4. supplies on hand total $800. 5. the insurance policy is a two-year policy dated january 1. instructions: a. prepare the adjusting entries at march 31, assuming that adjusting entries are made quarterly. additional accounts are: depreciation expense, insurance expense, interest payable, and supplies expense. b. compute the ending balances for prepaid insurance, unearned rent revenue, and rent revenue, and indicate in which financial statement those items will be reported.