Journal Final Question Instructions On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty The suppiles account balance on March 31 is $5,635, the supplies on hand on March 31 are $1,495. The unearned rent account balance on March 31 is 84,800 representing the receipt of an advance payment on March 1 of four months' rent from tenants, Wages accrued but not paid at March 31 aro $2,035. Fees accrued but unbilled at March 31 are $15,450 Depreciation of office equipment is 84,420 Required: 1. Journalize the adjusting entries required ar March 31. Refer to the Chart of Accounts for exact wording of account bles. 2. What is the difference between adjusting entries and correcting entries? Adjusting entries Journal Final Question Chart of Accounts CHART OF ACCOUNTS Potomac Realty I General Ledger ASSETS REVENUE 41 Fees Eamed 42 Rent Revenue 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance EXPENSES 15 Land 16 Office Equipment 17 Accumulated Depreciation Office Equipment 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Wages Expense 55 Supplies Expense 56 Utilities Expense 57 Depreciation Expense LIABILITIES 21 Accounts Payable 22 Unearned Rent 59 Miscellaneous Expense 23 Wages Payable 24 Taxes Payable Check My Work All work saved 17 Accumulated Depreciation Office Equipment 53 Rent Expense 54 Wages Expense LIABILITIES 55 Supplies Expense 21 Accounts Payable 56 Utilities Expense 22 Uneamed Rent 57 Depreciation Expense 23 Wages Payable 59 Miscellaneous Expense 24 Taxes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Check My Work CLOUD CURONOWY eBook Show Me How Calculator Journal 1. Joumettre the adjusting entries required on March 31. Refer to the Chart of Accounts for exact wording of accounts I PAGE 10 JOURNAL ACCOUNTING EQUATION DATE POST. REF. DERIT CREDIT ASSETS LIABILITIES DESCRIPTION Adjusting Entries EQUITY 2 Mar. 31 3 Mar. 31 Mar 31 5 Mar. 31 5 Mar. 31 7 Mar 31 8 Mar. 31 9 Mar 31 10 Mar 31 Mar 31 Check My Work Previous Ned Journal Final Question 2. What is the difference between adjusting entries and correcting entries? Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors. Both adjusting entries and correcting entries are a planned part of the accounting process, Both adjusting entries and correcting entries are not a planned part of the accounting process O Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors
