Question

On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty:

• The supplies account balance on December 31 is $5,865, The supplies on hand on December 31 are $1,330.
• The unearned rent account balance on December 31 is $4,100 representing the receipt of an advance payment on December 1 of four months’ rent from tenants.
• Wages accrued but not paid at December 31 are $2,030.
• Fees earned 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 titles.
2. What is the difference between adjusting entries and correcting entries?

Answer 1

Answer:

supplies expense  4,535 debit

       supplies                 4,535 credit

--to record suplpies consumption--

unearned revenue 1,050 debit

        rent revenue      1,050 credit

--to record accrued rent revenue--

salaries expense   2,030 debit

       salaries payable   2,030 credit

--to record accrued wages--

account receivables 18,090 debit

         fees earned             18,090 credit

--to record fees performed--

dep expense 4,500 debit

  accumulated depreication- equip  4,500 credit

--to record depreication for the period--

mostly, the adjusting entries are made to acknowledgethe past of time

Whie correcting entries fix erroneuos entries.

There as no mistake to amend in adjsuting entries. When we purchase the supplies and debit for 4,535

but as tiem pass we use them and know we acknowledge the amount consumed.

Explanation:

1) we subtract accounting balance with the physical count the difference si the supplies expense as those suplpies are extinguish

2)4,100 represent 4 months we divde and get the value of one month