On March 31, 2010, the following data were accumulated to assist the accountant in preparing the adjusting entries for Hackney Realty:
(a) The supplies account balance on March 31 is $2,315. The supplies on hand on March 31 are $990.
(b) The unearned rent account balance on March 31 is $7,950, representing the receipt of an advance payment on March 1 of three months’ rent from tenants.
(c) Wages accrued but not paid at March 31 are $800.
(d) Fees accrued but unbilled at March 31 are $7,100.
(e) Depreciation of office equipment is $700.
Instructions
1. Journalize the adjusting entries required at March 31, 2010.
2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.