Textbook Problem

Adjusting entries

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

• Fees accrued but unbilled at May 31 are $19,750.
• The supplies account balance on May 31 is $12,300. The supplies on hand at May 31 are $4,150.
• Wages accrued but not paid at May 31 are $2,700.
• The unearned rent account balance at May 31 is $9,000, representing the receipt of an advance payment on May 1 of three months’ rent from tenants.
• Depreciation of office equipment is $3,200.

Instructions

1. 1. Journalize the adjusting entries required at May 51.
2. 2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.