Question

Chart of Accounts Journal Final Question On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Really The supplies account balance on December 31 is $5,865, The supplies on hand on December 31 are $1,330 The uneamed rent account balance on December 31 is SA, 100 representing the receipt of an advance pay menton Dece ber 1four months rent from tenants Wages accrued but not paid at December 31 are $2,030 Fees eaned but unbilled at December 31 are $18,090 Depreciation of office equipment is $4,500 Required: 1. Journalize the adjusting entries required at December 31. Refer to the Chart of Accounts for exact wording of account ttles 2. What is the difference between adjusting entries and correcting entries?

Answer 1

Answer1. Transaction General Journal 1. Debit Credit Supplies Expense ($5,865- $1,330) Unearned Rent ($4,100 1/4) Wages Expense Accounts Receivable 4,535 1,025 2,030 18,090 4,500 Supplies 4,535 1,025 2,030 18,090 4,500 Rent Revenue Wages Payable 4 Fees Earned Depreciation Expense Accumulated Depreciation-Office Equipment Answer 2. Adjustingentries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.