A company forgot to record accrued and unpaid wages of $500,000 at the end of period. What world be the impact of this oversight? a. Understate net income by $500,000. b. Overstate net income by $500,000. c. Have no effect on net income. d. Understate assets by $500,000.
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- block a/2018/3 Hurtig AG shows in the HGB balance sheet as of 31.12. t1 resulted in a net loss of € 430 thousand and at the same time a retained profit of € 188 thousand. The HGB financial statements are certified by an auditor. Did the auditor fail?As of January 1, Retained Earnings had a credit balance of $61,100 . During the year, dividends totaled $1,600 , and the business incurred a net loss of $85,500 .\\na. Compute the balance of Retained Earnings as of the end of the year.\\nDebit (negative) balance ✓✓ $ ,x .\\nb. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance?\\nFeedback\\nCheck My Work\\na. Set up a T account for the retained earnings account. Retained Earnings accounts have normal credit balances. Net income, net losses an dividends are all adjustments to retained earnings.\\nb. Each properly recorded transaction that affects retained earnings must maintain the double-entry accounting system and the equality of the accounting equation: Assets = Liabilities + Stockholders' Equity.Kingston Company's December 31, year-end financial statement contained the following errors An insurance premium of Php150,000 was prepaid in 2020 covering the years 2020, 2021, and 2022. The same was charged to expense in full in 2020. Accrued interest Income of Php 36,000 was not recorded in 2020 A payment amounting to Php30,000 to an Advertising company representing marketing services availed was recorded as Salaries and Wages. Unrecorded interest expense amounting to Php 50,000 was not recorded in 2020 and subsequently paid in February 28, 2021 Based on the above answer the provide the impact on the following accounts