On July 31, 2014, the following data were accumulated to assist the accountant in preparing the adjusting entries for Atrium Realty:

a. The supplies account balance on July 31 is $6,880. The supplies on hand on July 31 are $2,200.

b. The unearned rent account balance on July 31 is $9,200, representing the receipt of an advance payment on July 1 of four months’ rent from tenants.

c. Wages accrued but not paid at July 31 are $1,850.

d. Fees accrued but unbilled at July 31 are $11,700.

e. Depreciation of office equipment is $3,500.

Instructions

1. Journalize the adjusting entries required at July 31, 2014.

2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.