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QUESTION 4 2 points Save Answer On April 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented five years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect 2016 and 2017 financial statements? Answer Format: Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets 12/31/16 $ Liabilities 12/31/16 $ Equity 12/31/16 Net Income 12/31/16 $ Assets Liabilities Equity 12/31/17 12/31/17 12/31/17 Net Income 12/31/17 $ $ $ $

QUESTION 4 2 points Save Answer On April 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented five years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect 2016 and 2017 financial statements? Answer Format: Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets 12/31/16 $ Liabilities 12/31/16 $ Equity 12/31/16 Net Income 12/31/16 $ Assets Liabilities Equity 12/31/17 12/31/17 12/31/17 Net Income 12/31/17 $ $ $ $

FINANCIAL ACCOUNTING
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 4 2 points Save Answer On April 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented five years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect 2016 and 2017 financial statements? Answer Format: Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets 12/31/16 $ Liabilities 12/31/16 $ Equity 12/31/16 Net Income 12/31/16 $ Assets Liabilities Equity 12/31/17 12/31/17 12/31/17 Net Income 12/31/17 $ $ $ $
Transcribed Image Text:QUESTION 4 2 points Save Answer On April 1, 2015, ABC Inc. received an advance payment from a tenant in the amount of $408,000 that represented five years of rent. When ABC received the cash payment, the entry was recorded with a credit to a nominal account. ABC's year end is December 31. Sadly, ABC was understaffed at the time and no adjusting entries were made in 2015, 2016, or 2017. How did this error affect 2016 and 2017 financial statements? Answer Format: Use O for overstated, U for Understated, and NE for no effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets 12/31/16 $ Liabilities 12/31/16 $ Equity 12/31/16 Net Income 12/31/16 $ Assets Liabilities Equity 12/31/17 12/31/17 12/31/17 Net Income 12/31/17 $ $ $ $
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