Problem - Prepare the monthly adjusting journal entries for Charlotte Ruston Inc. for the month ending March 31, 2006 using the following information (you may omit explanations for the transactions):
1. The balance in Supplies at March 1, 2006 is $2,000. The company made no purchases of supplies during March. An inventory of supplies on hand at March 31 reported supplies of $800.
2. The company pays weekly salaries for a 5-day week of $3,500 every Friday. March 31 falls on a Tuesday.
3. The company has an outstanding note payable of $10,000 due at December 31, 2006. Interest is accrued monthly on the note. The annual rate is 6%.
4. The company depreciates its plant and equipment at the rate of $4,000 per month.
5. The company purchased a 18-month insurance policy for $2,250 on January 1, 2006.