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3 years ago

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

Business

1 answer:

Mama L [17]3 years ago

7 0

Answer:

a. May 31

Dr Accounts Receivable 19,750

Cr Service Revenue 19,750

b. May 31

Dr Supplies Expense 8,150

Cr Supplies 8,150

c. May 31 Wages Expenses 2,700

Wages Payable 2,700

d. May 31

Dr Unearned Rent 3,000

Cr Rent Revenue 3,000

e. May 31

Dr Depreciation Expense 3,200

C Accumulated Depreciation-Office Equipment 3,200

2. ADJUSTING ENTRIES are entries that has already be planned for ahead or in advance while CORRECTING ENTRIES on the other hand are entries that comes up when necessary in order to correct errors.

Explanation:

1. Preparation of the adjusting entries required at May 31.

a. May 31

Dr Accounts Receivable 19,750

Cr Service Revenue 19,750

(To record unbilled fees)

b. May 31

Dr Supplies Expense 8,150

Cr Supplies 8,150

(12,300-4,150)

(To record supplies expense)

c. May 31 Wages Expenses 2,700

Wages Payable 2,700

(To record wages expense)

d. May 31

Dr Unearned Rent 3,000

Cr Rent Revenue 3,000

(9000/3 months)

(To record rent revenue)

e. May 31

Dr Depreciation Expense 3,200

C Accumulated Depreciation-Office Equipment 3,200

(To record depreciation expense)

2. ADJUSTING ENTRIES are entries that has already be planned for ahead or in advance while CORRECTING ENTRIES on the other hand are entries that comes up when necessary in order to correct errors.

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