Question

• The supplies account balance on March 31 is $6,620, the supplies on hand on March 31 are $1,290. • The unearned rent account balance on March 31 is $5,000 representing the receipt of an advance payment on March 1 of four months' rent from tenants. Wages accrued but not paid at March 31 are $2,290. • Fees accrued but unbilled at March 31 are $16,825 • Depreciation of office equipment is $4,600. Required: 1. Journalize the adjusting entries required at March 31. Refer to the Chart of Accounts for exact wording of account titles. 2. What is the difference between adjusting entries and correcting entries?

Answer 1

$5650 Maral Accounts receivane Adjusting entries Moral Suppuius expense supplies Marzi Supplier expense Seepplies Mars) uncanned Revenue Maral wage expense Wogee payalule $1990 $ 12.90 50DD $5000 Rent revenue 42990 $2290 416025 $16625 fees earned $460D Marsi Depreciation expense office equipment $4600 (3) Difference between adjusting entries and correcting catrina adjusting entries are recorded at the end of every accounting period so that the company's financial statearents reflect accrual method of accounting Adjusting entric involve at least De come statement account and at least one balance sheet account. correcting entries are journal entries made to correct an error in a previously recorded transaction correcting entries can invowe а any combination of incere State sunt account and balance sheet accocents. 1/1 =