Adjusting entries
On May 31, 2014, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty:
1. Fees accrued but unbilled at May 31 are $19,750.
2. The supplies account balance on May 31 is $12,300. The supplies on hand at May 31 are $4,150.
3. Wages accrued but not paid at May 31 are $2,700.
4. 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.
5. Depreciation of office equipment is $3,200.
Instructions
1. Journalize the adjusting entries required at May 31, 2014.
2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.