Question

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.

May 31
31
31
31
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. _____?

Answer 1

Adjusting entry :

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)

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.