On May 31, the following data were accumulated to assist the accountant in prepa

Question

On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Dependable Realty.

a. Fees accrued but unbilled at May 31 are $10,070.

b. The supplies account balance on May 31 is $3,310. The supplies on hand at May 31 are $950.

c. Wages accrued but not paid at May 31 are $1,270.

d. The unearned rent account balance at May 31 is $9,870, representing the receipt of an advance payment on May 1 of three months' rent from tenants.

e. Depreciation of office equipment is $1,680.

Required:

Journalize the adjusting entries required at May 31.

What is the difference between adjusting entries and correcting entries?

Both adjusting entries and correcting entries are a planned part of the accounting process.

Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.

Both adjusting entries and correcting entries are not a planned part of the accounting process.

Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors.

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Oct. 31 31 31 31 31

Explanation / Answer

Adjusting entry :

What is the difference between adjusting entries and correcting entries?

So 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 account and explanation debit credit May 31 Account receivable 10070 Fees revenue 10070 (To record accured revenue) May 31 Supplies expense 2360 Supplies 2360 (To record supplies) May 31 Wages expense 1270 Wages payable 1270 (To record accured wages) May 31 Unearned rent 3290 Rent revenue 3290 (To record rent revenue) May 31 Depreciation expense 1680 Accumlated depreciation 1680 (To record depreciation)

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