Ask Question
BusinessBusiness
15 August, 04:23

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

• The supplies account balance on March 31 is $5,640, the supplies on hand on March 31 are $1,445.

• The unearned rent account balance on March 31 is $5,400 representing the receipt of an advance payment on March 1 of four months' rent from tenants.

• Wages accrued but not paid at March 31 are $2,125.

• Fees accrued but unbilled at March 31 are $18,590.

• Depreciation of office equipment is $4,785.

Required:

a. Journalize the adjusting entries required on March 31. Refer to the Chart of Accounts for exact wording of account titles.

b. What is the difference between adjusting entries and correcting entries?

+3
Answers (1)
  1. 15 August, 07:28
    0
    1. Adjusting journal entries on March 31.

    Debit Credit

    a. Supplies expenses $4,195

    Supplies account $4,195

    b. Unearned rent $1,350

    Rent revenue $1,350

    c. Wages Expense $2,125

    Accrued Expenses $2,125

    d. Account Receivable $18,590

    Service revenue $18,590

    e. Depreciation expense $4,785

    Accumulated Depreciation - $4,785

    Office equipment

    Working:

    a. Supplies account 5,640

    Less: Supplies on hand 1,445

    Supplies expense $4,195

    b. Unearned rent on March 31 = 5400; Rent for (Months) = 4

    Per month Rent=$1,350

    2. The difference between adjusting entries and Correcting entries is:

    Adjusting entries are made to reflect the accrual method of accounting in preparing financial statement.

    Correcting entry is made only when there is errors in accounts.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty: • The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Busch Company has these obligations at December 31. For each obligation, indicate whether it should be classified as a current liability, noncurrent liability, or both. (a) A note payable for $100,000 due in 2 years.
Answers (1)
Four Corners is an IBC company that sells delicious Navajo tacos in the Crossroads Food Court. Part of their success can be attributed to the freshly fried Indian bread that is used not only for the tacos, but also for dessert items.
Answers (1)
Do you hate jewlary yes or no
Answers (1)
Campbell Candy Corporation desires a 14% return on investment (ROI) on all operations. The following information was available for the company for the current year: Sales $ 14,000 Operating income $ 4,000 Turnover 0.
Answers (1)
Property rights assure people that A. international trade will be limited. B. the government will provide a minimum standard of living. C. the government will not confiscate their income or savings. D.
Answers (2)
New Questions in Business
The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.
Answers (1)
Which of these is an example of a tax on consumption?
Answers (1)
What is a business service orientation
Answers (1)
The GASB defines a financial reporting entity as the primary government and the entities for which the primary government is financially accountable.
Answers (1)
What is your total industry wide sales volume? In Dollars? In Units?
Answers (1)
Home » Business » On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty: • The supplies account balance on March 31 is $5,640, the supplies on hand on March 31 are $1,445.
Sign Up Forgot Password?