9. Identify the impact on the income statement and balance sheet if adjusting entries for the following situations were not recorded. View the adjustments. (For each situation, select two items impacted for the income statement and two items impacted for the balance sheet.) a. Supplies used, $800. Identify the impact on the income statement and balance sheet if the adjusting entry was not recorded. Impact on Income Statement Impact on Balance sheet Equity overstated Equity understated Net income overstated Net income understated Supplies overstated Supplies understated Supplies Expense overstated Supplies Expense understated Adjustments a. Supplies used, $800. b. C. d. e. f. Accrued service revenue, $4,000. Depreciation on building, $3,500. Prepaid Insurance expired, $650. Accrued salaries expense, $2,750. Service revenue that was collected in advance has now been earned, $130. Print Done I X

9. Identify the impact on the income statement and balance sheet if adjusting entries for the following situations were not recorded. View the adjustments. (For each situation, select two items impacted for the income statement and two items impacted for the balance sheet.) a. Supplies used, $800. Identify the impact on the income statement and balance sheet if the adjusting entry was not recorded. Impact on Income Statement Impact on Balance sheet Equity overstated Equity understated Net income overstated Net income understated Supplies overstated Supplies understated Supplies Expense overstated Supplies Expense understated Adjustments a. Supplies used, $800. b. C. d. e. f. Accrued service revenue, $4,000. Depreciation on building, $3,500. Prepaid Insurance expired, $650. Accrued salaries expense, $2,750. Service revenue that was collected in advance has now been earned, $130. Print Done I X

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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Question

9. Identify the impact on the income statement and balance sheet if adjusting entries for the following situations were not recorded.
View the adjustments.
(For each situation, select two items impacted for the income statement and two items impacted for the balance sheet.)
a. Supplies used, $800. Identify the impact on the income statement and balance sheet if the adjusting entry was not recorded.
Impact on Income Statement
Impact on Balance sheet
Equity overstated
Equity understated
Net income overstated
Net income understated
Supplies overstated
Supplies understated
Supplies Expense overstated
Supplies Expense understated
Adjustments
...
a.
Supplies used, $800.
b. Accrued service revenue, $4,000.
Depreciation on building, $3,500.
Prepaid Insurance expired, $650.
e.
Accrued salaries expense, $2,750.
f. Service revenue that was collected in advance has now been earned, $130.
C.
d.
Print
Done
I
X

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