Question

On May 31, the following data were accumulated to assist theaccountant in preparing the adjusting entries for OceansideRealty:

a.	Fees accrued but unbilled at May 31are $19,750.
b.	The supplies account balance on May31 is $12,300. The supplies on hand at May 31 are $4,150.
c.	Wages accrued but not paid at May31 are $2,700.
d.	The unearned rent account balanceat May 31 is $9,000, representing the receipt of an advance paymenton May 1 of three months’ rent from tenants.
e.	Depreciation of office equipment is$3,200.

	Required:
1.	Journalize the adjustingentries required at May 31. Refer to the Chart of Accounts forexact wording of account titles.
2.	What is the difference betweenadjusting entries and correcting entries?

Chart of Accounts

CHARTOF ACCOUNTS

Oceanside Realty

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Equipment
17	AccumulatedDepreciation-Equipment
19	AccumulatedDepreciation-Automobiles

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Wages Payable
24	Taxes Payable

	EQUITY
31	Owner, Capital
32	Owner, Drawing

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Advertising Expense
52	Insurance Expense
53	Rent Expense
54	Wages Expense
55	Supplies Expense
56	Utilities Expense
57	Depreciation Expense
59	Miscellaneous Expense