On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:

• The supplies account balance on March 31 is $5,620. The supplies on hand on March 31 are $1,290.

• The unearned rent account balance on March 31 is $5,000 representing the receipt of an advance payment on March 1 of four months’ rent from tenants.

• Wages accrued but not paid at March 31 are $2,290.

• Fees accrued but unbilled at March 31 are $16,825.

• Depreciation of office equipment is $4,600.

Instructions

1. Journalize the adjusting entries required at March 31.

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