Answer and Explanation:
<u>Date Adjusting entries Debit Credit Asset Liabilities Equity </u>
Dec 31 Supplies Expense $4,140 <u> Decrease</u>
To Supplies $4,140 <u>Decrease</u>
(Being the supplies expense is recorded)
It is computed below:
= Account balance - still on hand
= $5,635 - $1,495
= $4,140
Dec 31 Unearned Rent revenue $1,150 <u>Decresae </u>
To Rent revenue $1,150 <u> Increase</u>
(Being the unearned rent revenue is recorded)
It is computed below:
= $4,600 ÷ 4 months
= $1,150
Dec 31 Wages Expense $2,035 <u>Decrease</u>
To Wages payable $2,035 <u> Increase</u>
(Being the wages expense is recorded)
Dec 31 Accounts Receivable $15,450 <u>Increase </u>
To Fees earned $15,450 <u>Increase</u>
(Being the fees earned is recorded)
Dec 31 Depreciation expense $4,420 <u>Decrease </u>
To Accumulate depreciation
- Office Equipment $4,420 <u>Decresae</u>
(Being the depreciation expense is recorded)
2 Adjusting entries are the entries that are to be adjusted at the end of the accounting period but it is planed but the correcting entries are not planned it is required when we want to just correct the errors