PR 3-1A Adjusting entries
On October 31, 2012, the following data were accumulated to assist the accountant in preparing the adjusting entries for Dependable Realty:
a. The supplies account balance on October 31 is $3,975. The supplies on hand on October 31 are $1,050.
b. The unearned rent account balance on October 31 is $11,000, representing the receipt of an advance payment on October 1 of four months’ rent from tenants.
c. Wages accrued but not paid at October 31 are $2,500.
d. Fees accrued but unbilled at October 31 are $4,900.
e. Depreciation of office equipment is $1,100.
Instructions
1. Journalize the adjusting entries required at October 31, 2012.
2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.