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 $19,750.
b. The supplies account balance on May 31 is $12,300. The supplies on hand at May 31 are $4,150.
c. Wages accrued but not paid at May 31 are $2,700.
d. 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.
e. Depreciation of office equipment is $3,200.
Required:
1. Journalize the adjusting entries required at May 31. Refer to the Chart of Accounts for exact wording of account titles.
2. What is the difference between adjusting entries and correcting entries?
Chart of Accounts
CHART OF ACCOUNTS
Oceanside Realty
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
19 Accumulated Depreciation-Automobiles
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Wages Payable
24 Taxes Payable
EQUITY
31 Owner, Capital
32 Owner, Drawing
REVENUE
41 Fees Earned
42 Rent Revenue
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Wages Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense