At the end of April, the first month of the company's 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.
(a) Rent revenue (or revenues) will be understated. Net income will be understated.
(b) Shareholders' equity at the end of the period will be understated. Unearned rent (or liabilities) will be overstated.
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The Allowance for Bad Debts account has a credit balance of $5,000 before the adjusting entry for bad debts expense
The company's management estimates that 5% of net credit sales will be uncollectible for the year 2017. Net credit sales for the year amounted to $280,000. What is the amount of Bad Debts Expense reported on the income statement for 2017? A) $14,000 B) $19,000 C) $7,000 D) $9,000
In Georgia, which of the following forms of ownership must be stated in writing on the deed?
A. Tenancy in common. B. Joint tenancy with rights of survivorship. C. Tenancy by the entirety. D. Community property.