Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 1

Adjusting entries
On March 31, 2016, 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.
Instructions
1. Journalize the adjusting entries required at March 31, 2016.
2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.