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 $5,225, the supplies on hand on March 31 are $1,275. The unearned rent account balance on March 31 is $5,700 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 $2,485. Fees accrued but unbilled at March 31 are $16,245. Depreciation of office equipment is $4,005. Required: 1. Journalize the adjusting entries required at March 31. Refer to the Chart of Accounts for exact wording of account titles. 2. What is the difference between adjusting entries and correcting entries? CHART OF ACCOUNTS Potomac Realty General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 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 LIABILITIES 55 Supplies Expense 56 Utilities Expense 21 Accounts Payable 22 Unearned Rent 57 Depreciation Expense 15 Land 16 Office Equipment 51 Advertising Expense 52 Insurance Expense 53 Rent Expense 54 Wages Expense 17 Accumulated Depreciation Office Equipment LIABILITIES 55 Supplies Expense 21 Accounts Payable 22 Unearned Rent 23 Wages Payable 56 Utilities Expense 57 Depreciation Expense 59 Miscellaneous Expense 24 Taxes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Adjusting Entries 2 3 4 5 6 7 8 9 10 CREDIT ACCOUNTING FOLATION ASSETS LIABILITIES EQUITY