Question

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 $13,680. The supplies account balance on May 31 is $4,500. The supplies on hand at May 31 are $1,290. Wages accrued but not paid at May 31 are $1,720. The unearned rent account balance at May 31 is $13,410, representing the receipt of an advance payment on May 1 of three months' rent from tenants. Depreciation of office equipment is $2,280. 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 adjusting entries are shown below:

1. Accounts Receivable $13,680

       To Fees Earned $13,680

(Being Accrued fees earned is recorded)  

2. Supplies Expense $3,210 ($4500 - $1290)

             To Supplies $3,210

(Being Supplies used is recorded)  

3. Wages Expense $1,720

          To Wages Payable ($1,720

(Being Accrued wages is recorded)

4. Unearned Rent $4,470 ($13,410 ÷ 3 month)

           To Rent Revenue $4,470

(Being rent earned is recorded)

5. Depreciation Expense $2,280

       To Accumulated Depreciation- Equipment $2,280

(Being Depreciation expense is recorded)