Question
On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty: a. The supplies account balance
On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:
a. | The supplies account balance on March 31 is $5,620, the supplies on hand on March 31 are $1,290. |
b. | The unearned rent account balance on March 31 is $5,000 representing the receipt of an advance payment on March 1 of four months rent from tenants. |
c. | Wages accrued but not paid at March 31 are $2,290. |
d. | Fees accrued but unbilled at March 31 are $16,825. |
e. | Depreciation of office equipment is $4,600. |
CHART OF ACCOUNTSPotomac RealtyGeneral Ledger
Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. | Journalize the adjusting entries required on 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? A) Both adjusting entries and correcting entries are a planned part of the accounting process. B) Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors. C) Both adjusting entries and correcting entries are not a planned part of the accounting process. D) Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started