On December 31, the following data were accumulated for preparing the adjusting entries

for Bellingham Realty:

• The supplies account balance on December 31 is $1,375. The supplies on hand on December 31 are $280.

• The unearned rent account balance on December 31 is $9,000 representing the receipt of an advance payment on December 1 of four months' rent from tenants.

• Wages accrued but not paid at December 31 are $3,220.

• Fees earned but unbilled at December 31 are $18,750.

• Depreciation of office equipment is $2,900.

Instructions

1. Journalize the adjusting entries required at December 31.

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