Chapter 3 HW: 5

On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty:

a. Fees accrued but unbilled at May 31 are $11,890.

b. The supplies account balance on May 31 is $3,910. The supplies on hand at May 31 are $1,120.

c. Wages accrued but not paid at May 31 are $1,500.

d. The unearned rent account balance at May 31 is $11,640, representing the receipt of an advance payment on May 1 of three months' rent from tenants.

e. Depreciation of office equipment is $1,990.

Required:

Question Content Area

Journalize the adjusting entries required at May 31.

What is the difference between adjusting entries and correcting entries?

1. Both adjusting entries and correcting entries are a planned part of the accounting process.
2. Adjusting entries are a planned part of the accounting process, correcting entries are not planned but arise when necessary to correct errors.
3. Both adjusting entries and correcting entries are not a planned part of the accounting process.
4. Correcting entries are a planned part of the accounting process, adjusting entries are not planned but arise when necessary to adjust errors.

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