On December $31,$ the following data were accumulated for preparing the adjusting entries for Flagship Realty:

$$ The supplies account balance on December $31$ is $$5,640.$ The supplies on hand on December $31$ are $$1,445.$

$$ The unearned rent account balance on December $31$ is $$5,400$ representing the receipt of an advance payment on December $1$ of five months$$ rent from tenants.

$$ Wages accrued but not paid at December $31$ are $$2,125.$

$$ Fees earned but unbilled at December $31$ are $$18,590.$

$$ Depreciation of office equipment is $$4,785.$

Required:

$1.$ Journalize the adjusting entries required at December $31.$ Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

$2.$ What is the difference between adjusting entries and correcting entries?

CHART OF ACCOUNTS

Flagship Realty

General Ledger

ASSETS

$11$ Cash

$12$ Accounts Receivable

$13$ Supplies

$14$ Prepaid Insurance

$15$ Land

$16$ Office Equipment

$17$ Accumulated Depreciation$-$Office Equipment

LIABILITIES

$21$ Accounts Payable

$22$ Unearned Rent

$23$ Wages Payable

$24$ Taxes Payable

EQUITY

$31$ Common Stock

$32$ Retained Earnings

$33$ Dividends

REVENUE

$41$ Fees Earned

$42$ Rent Revenue

EXPENSES

$51$ Advertising Expense

$52$ Insurance Expense

$53$ Rent Expense

$54$ Wages Expense

$55$ Supplies Expense

$56$ Utilities Expense

$57$ Depreciation Expense

$59$ Miscellaneous Expense Journalize the adjusting entries required on December $31.$ Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal

explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE $10$

JOURNAL What is the difference between adjusting entries and correcting entries?

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.

Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors.

Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors. Instructions

Creative Images Co$.$ offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July $31,$ the end of the fiscal year, the following

balances were taken from the ledger of Creative Images Co$.$:

ASSETS

REVENUE

$11$ Cash

$41$ Fees Earned

$12$ Accounts Receivable

$13$ Prepaid Rent

EXPENSES

$14$ Supplies

$51$ Wages Expense

$52$ Rent Expense

LIABILITIES

$53$ Supplies Expense

$21$ Accounts Payable

$54$ Miscellaneous Expense

$22$ Wages Payable

$23$ Unearned Fees

EQUITY

$31$ Violet Lozano, Capital

$32$ Violet Lozano, Drawing Closing Entries

After the accounts have been adjusted at April $30,$ the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co$.$:

Journalize the two entries required to close the accounts.

If an amount box does not require an entry, leave it blank.

Apr. $30$

Apr. $30$ Aajusting Entries

Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

Milbank Repairs & Service

Unadjusted Trial Balance

June $30,20Y4$ror preparing the adjusting entries, the ro$$rowing alata were assembied:

Fees earned but unbilled on June $30$ were $$10,420.$

Supplies on hand on June $30$ were $$8,500.$

Depreciation of equipment was estimated to be $$14,390$ for the year.

The balance in unearned fees represented the June $1$ receipt in advance for services to be provided. During June, $$20,000$ of the services were provided.

Unpaid wages accrued on June $30$ were $$1,840.$

Required:

Journalize the adjusting entries necessary on June $30,20Y4.$ If an amount box does not require an entry, leave it blank.

$20Y4$

June $30$

Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries.