Question

Prepare the December 31 adjusting entries and correcting entries based on the following information. Omit explanations.

Adjusting Entries:

1. Rent expired during year, $10,000.

2. Fees accrued but unbilled total $20,000.

3. The supplies account balance on December 31 is $3,100. Supplies on hand are $1,150.

Correcting Entries:

4. A receipt of $15,000 for services performed was erroneously recorded and posted as a debit to Fees Earned and a credit to Cash.

5. A purchase of Equipment with cash for $50,000 was erroneously recorded and posted as a debit to Supplies for $500,000 and a credit to cash for $500,000.

Format: Please use the provided Chart of Accounts for appropriate account names (do not use account numbers, just names). Enter debits and credits as WHOLE NUMBERS WITH COMMAS! NO DECIMALS POINTS OR DOLLAR SIGNS!

Date	Account Name	Debit	Credit
Dec 31 #1
Dec 31 #2
Dec 31 #3
Dec 31 #4
Dec 31 #5

Answer 1

journals

Date	Accounts	Debit	Credit	Working
Dec 31	Rent expense	$10,000		rent paid in advance has been expired so will be rcirded as an expense.
	Prepaid rent		$10,000
Dec 31	Accounts receivable	$20,000		Fees accrued not received
	Revenue		$20,000	Fees to be received is an income
Dec 31	Supplies expense	$1,950		[$3,100-1,150]
	supplies		$1,950
Dec 31	Cash	$30,000		15,000 for reversing the error for reverse entry and 15,000 for actual correct entry so 30,000 in total
	Fees earned		$30,000
Dec 31	Equipment	$50,000		equipment purchase not recorded
	Cash	$450,000		Actual outflow was $50,000 so $500,000-$50,000 wrongly credited which will be reversed by debiting cash
	Supplies		$500,000	supplies wromgly debited

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