Homework SourseAdjusting Entries On May 31 the following data were accumula
Adjusting Entries
On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty.
a. Fees accrued but unbilled at May 31 are $7,290.
b. The supplies account balance on May 31 is $2,400. The supplies on hand at May 31 are $690.
c. Wages accrued but not paid at May 31 are $920.
d. The unearned rent account balance at May 31 is $7,140, representing the receipt of an advance payment on May 1 of three months\' rent from tenants.
e. Depreciation of office equipment is $1,220.
Required:
Journalize the adjusting entries required at May 31.
What is the difference between adjusting entries and correcting entries?
a. Both adjusting entries and correcting entries are a planned part of the accounting process.
b. Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.
c. Both adjusting entries and correcting entries are not a planned part of the accounting process.
d. Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors. _____?
| May 31 | |||
| 31 | |||
| 31 | |||
| 31 | |||
| 31 | |||
Solution
Adjusting entry :
What is the difference between adjusting entries and correcting entries?
answer is b. Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.
| Date | accounts & explanation | debit | credit |
| May 31 | Account receivable a/c | 7290 | |
| Fees revenue a/c | 7290 | ||
| (To record fees) | |||
| May 31 | Supplies expenses a/c | 1710 | |
| Supplies a/c | 1710 | ||
| (To record supplies adjusted) | |||
| May 31 | Wages expenses a/c | 920 | |
| wages payable a/c | 920 | ||
| (To record wages expenses) | |||
| May 31 | Unearned rent a/c | 2380 | |
| rent revenue a/c | 2380 | ||
| (To record rent revenue) | |||
| May 31 | Depreciation expenses a/c | 1220 | |
| Accumlated dep | 1220 | ||
| (To record dep) |
