Effect of omitting adjusting entryAt the end of October, the first month of the business year, the usual adjusting entry transferring rent earned to a revenue account from theunearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement forOctober and (b) the balance sheet as of October 31. Also indicate whether the items in error will be overstated or understated.a. Income StatementTHIRent RevenueNet Incomeb. Balance SheetUnearned RentOwner's Equity

Adjusting entries guarantees that the financial reports (which include the income statement and…

At the end of October, the first month of the business year, the usual adjusting entry t unearned rent account was omitted. Indicate which items will be incorrectly stated, be October and (b) the balance sheet as of October 31. Also indicate whether the items in a. Income Statement Rent Revenue Net Income b. Balance Sheet Unearned Rent Owner's Equity

At the end of October, the first month of the business year, the usual adjusting entry t unearned rent account was omitted. Indicate which items will be incorrectly stated, be October and (b) the balance sheet as of October 31. Also indicate whether the items in a. Income Statement Rent Revenue Net Income b. Balance Sheet Unearned Rent Owner's Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

if mistakenly omitted adjusting entries for (a) unearned revenue earned during the year ($34,900) and (b) accrued wages ($12,770). What is the effect of each error, considered individually, on the income statement for the current year ended July 31.
Which of the following accounts will not be closed to Retained Earnings at the end of the fiscal year? a.Utilities Expense b.Insurance Expense c.Prepaid Insurance d.Fees Earned
Problem 1. At the end of April, the first month of the year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated. 2. Salaries of ‎₱6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if the month ends on Thursday. 3. Accrued salaries of ‎₱600 owed to employees for December 29, 30, and 31 are not taken into consideration in preparing the financial statements for the year ended December 31. Indicate which items will be erroneously stated, because of the error, on (a) the income statement for the year and (b) the balance sheet as of December 31. Also indicate whether the items…
On January 2, Good Dog Mart prepaid $22,080 rent for the year and recorded the prepayment in an asset account. Journalize the January 31 adjusting entry for rent expense. If an amount box does not require an entry, leave it blank. January 31
Do a b and c
Which of the following accounts will not be closed to Retained Earnings at the end of the fiscal year? a.Utilities Expense b.Prepaid Insurance c.Insurance Expense d.Fees Earned
Journalize the adjusting entries and post to the general ledger - Adjusting entries: 1. Expired insurance for the period $500 2.Accrued salary expense ( earned but not paid ) owed to Sophia LeBron,$5600. (Credit Salaries Payable. Payroll taxes are not considered in this entry. 3.Provision for uncollectible accounts estimated at 3.0% of March creadit sales,$927
promised to pay both December and January rent in full on January 31. f. On November 1, the company rented space to another tenant for $2,446 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Revenue account. Assume no other adjusting entries are made during the year. Required: 1. Use the information to prepare adjusting entries as of December 31. 2. Prepare journal entries to record the first subsequent cash transaction in January of the next year for parts c and e. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information to prepare adjusting entries as of December 31. View transaction list Journal entry worksheet < 1 Transaction a. 2 3 The Office Supplies account started the year with a $3,825 balance. During the year, the company purchased supplies for $15,797, which was added to the Office Supplies account. The inventory of supplies available at December 31…