On October 31, 2006, the following data were accumulated to assist the accountant in preparing the adjusting entries for Melville Realty:

a. The supplies account balance on October 31 is $1,875. The supplies on hand on October 31 are $310.

b. The unearned rent account balance on October 31 is $4,020, representing the receipt of an advance payment on October 1 of three months’ rent from tenants.

c. Wages accrued but not paid at October 31 are $2,150.

d. Fees accrued but unbilled at October 31 are $11,278.

e. Depreciation of office equipment is $1,000.

Instructions

1. Journalize the adjusting entries required at October 31, 2006.

2. Briefly explain the difference between adjusting entries and entries that would be made to correct errors.