On December 31, 2015, the following data were accumulated to assist the accountant in preparing the adjusting entries for Blue Realty:
a. Fees accrued but unbilled at December 31 are $8,000.
b. The supplies account balance on December 31 is $3,000. The supplies on hand at December 31 are $850.
c. Wages accrued but not paid at December 31 are $1,350.
d. The unearned rent account balance at December 31 is $9,249, representing the receipt of an advance payment on December 1 of three months’ rent from tenants.
e. Depreciation of the equipment is $1,400.
Instructions
1. Journalize the adjusting entries required at December 31, 2015.
2. Journalize the optional reversing entries required at the beginning of the next year.