5.1 Accounting

TAREA 5.1- LAST 2 EXERCISES (PR 3 -1A - PR 3 - 2A) PR 3-1A Adjusting entries 12 PUNTOS On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty: The supplies account balance on December 31 is $6,620. The supplies on hand on December 31 are $580. The unearned rent account balance on December 31 is $18,000 representing the receipt of an advance payment on December 1 of four months' rent from tenants. Wages accrued but not paid on December 31 are $3,220. Fees earned but unbilled on December 31 are $29,750. Depreciation of office equipment is $5,900. Instructions 1. Journalize the adjusting entries required on December 31. 2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors. PR 3-2A Adjusting entries 12 PUNTOS Selected account balances before adjustment for Atlantic Coast Realty on July 31, the end of the current year, are as follows: Debits Credits Cash $29,095 Accounts Receivable $ 82,500 Equipment 380,270 Accumulated Dep. Equip. $ 123,750 Prepaid Rent 9,900 Supplies 3,685 Wages Payable Unearned Fees 13,200 Fees Earned 726,000 Wages Expense 357,500 Rent Expense Depreciation Expense Supplies Expense Data needed for year-end adjustments are as follows: . Unbilled fees at July 31, $12,265. . Supplies on hand at July 31, $990 . Rent expired, $6,600 . Depreciation of equipment during year, $9,845. . Unearned fees on July 31, $2,200 Wages accrued but not paid at July 31, $5,324TAREA 5.1- LAST 2 EXERCISES PR 3 -1A - PR 3 2A Instructions: 1. Journalize the six adjusting entries required at July 31, based on the data presented. 2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? 3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? 4. Prepared Unadjusted trial balance