2. Explain the impact on the accounting equation (over/understated) if the following informatioi is not used to adjust the accounts. 1. Supplies consumed totaled $2,750. 2. Interest accrues on notes payable at the rate of $180 per month. 3. Insurance of $470 expired during the month. 4. Plant and equipment are depreciated at the rate of $1,450 per month.

2. Explain the impact on the accounting equation (over/understated) if the following informatioi is not used to adjust the accounts. 1. Supplies consumed totaled $2,750. 2. Interest accrues on notes payable at the rate of $180 per month. 3. Insurance of $470 expired during the month. 4. Plant and equipment are depreciated at the rate of $1,450 per month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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