Question
On October 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Bickle Realty: The supplies account balance on
On October 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Bickle Realty: The supplies account balance on October 31 is $5,635. The supplies on hand on October 31 are $1,495. The unearned rent account balance on October 31 is $4,600 representing the receipt of an advance payment on October 1 of four months rent from tenants. Wages accrued but not paid at October 31 are $2,035. Fees accrued but unbilled at October 31 are $15,450. Depreciation of office equipment is $4,420. Required: 1. Journalize the adjusting entries required at October 31. 2. What is the difference between adjusting entries and correcting entries?
CHART OF ACCOUNTSBickle RealtyGeneral 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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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