Question

Adjusting Entries On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Oceanside Realty: Fees accrued but unbilled at May 31 are $8,600. The supplies account balance on May 31 is $2,830. The supplies on hand at May 31 are $810. Wages accrued but not paid at May 31 are $1,080. The unearned rent account balance at May 31 is $8,430, representing the receipt of an advance payment on May 1 of three months' rent from tenants. Depreciation of office equipment is $1,440. Required: 1. Journalize the adjusting entries required at May 31. If an amount box does not require an entry, leave it blank.

Answer 1

Answer and Explanation:

The journal entries are shown below:

1. Accounts Receivable $8,600

       To Fees Earned $8,600

(Being Accrued fees earned is recorded)

2. Supplies Expense ($2,830 - $810) $2,020

        To Supplies $2,020

(Being supplies expense is recorded)

3. Wages Expense $1,080

   To wages payable $1,080

(Being wages expense is recorded)

  4. Unearned Rent  ($8,430 ÷ 3) $2,810

         To Rent Revenue $2,810

(Being unearned rent is recorded)

5. Depreciation Expense $1,440  

       To Accumulated Depreciation- Equipment $1,440

(Being Depreciation expense is recorded)