ACT3100 - Accounting Principles Semester 1, 2020/2021 TOPIC 3 - Exercise 3 QUESTION 1 Classify the following items as (a) accrued revenue, (b) accrued expense, (e) unearned revenue, or (d) prepaid expense: 1. Bill for ads that appeared in prior month's local newspaper. 2. Fees received but not yet eamed. 3. Fees earned but not yet received. 4. Premium paid on a one-year insurance policy. Rent received in advance for rental of office space. 6. Supplies on hand. 7. Rent paid in advance 8. Wages owed but payable in the following period. S. QUESTION 2 On December 31, the following data were accumulated for preparing the adjusting entries for K.Nerus Realty: The supplies account balance on December 31 is RM1,375. The supplies on hand on December 31 are RM280. The unearned rent account balance on December 31 is RM9,000 representing the receipt of an advance payment on December of four months' rent from tenants Wages accrued but not paid at December 31 are RM3,220. Fees earned but unbilled at December 31 are RM18,750. Depreciation of office equipment is RM2,900. O o o Instructions: 1. Journalize the adjusting entries required at December 31. 2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors