Reference no: EM132875501

Problem - Adjusting entries - On October 31, 2012, the following data were accumulated to assist the accountant in preparing the adjusting entries for Dependable Realty:

a. The supplies account balance on October 31 is $3,975. The supplies on hand on October 31 are $1,050.

b. The unearned rent account balance on October 31 is $11,000, representing the receipt of an advance payment on October 1 of four months' rent from tenants.

c. Wages accrued but not paid at October 31 are $2,500.

d. Fees accrued but unbilled at October 31 are $4,900.

e. Depreciation of office equipment is $1,100.

Required -

1. Journalize the adjusting entries required at October 31, 2012.

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