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Adjusting Entries for Atrium Realty

The document provides accounting data for Atrium Realty to prepare adjusting entries on July 31, 2014, including supplies on hand, unearned rent, wages and fees accrued but not paid, and depreciation of equipment. Adjusting entries update revenue, expense, and asset accounts to reflect economic activity that occurred by the end date but was not recorded in the accounts yet, while correcting entries fix mistakes made in the original recording of transactions.

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Kate thily
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413 views1 page

Adjusting Entries for Atrium Realty

The document provides accounting data for Atrium Realty to prepare adjusting entries on July 31, 2014, including supplies on hand, unearned rent, wages and fees accrued but not paid, and depreciation of equipment. Adjusting entries update revenue, expense, and asset accounts to reflect economic activity that occurred by the end date but was not recorded in the accounts yet, while correcting entries fix mistakes made in the original recording of transactions.

Uploaded by

Kate thily
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PR 3-1A Adjusting entries

On July 31, 2014, the following data were accumulated to assist the accountant in preparing
the adjusting entries for Atrium Realty:

a. The supplies account balance on July 31 is $6,880. The supplies on hand on July 31 are
$2,200.

b. The unearned rent account balance on July 31 is $9,200, representing the receipt of an
advance payment on July 1 of four months’ rent from tenants.

c. Wages accrued but not paid at July 31 are $1,850.

d. Fees accrued but unbilled at July 31 are $11,700.

e. Depreciation of office equipment is $3,500.

Instructions

1. Journalize the adjusting entries required at July 31, 2014.

2. Briefly explain the difference between adjusting entries and entries that would be made to
correct errors.

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