Reference no: EM132769612
Problem - 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.
Required -
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.