Using the Balance Day Adjustment journals below as an example, identify and explain the potential impacts on the Income Statement and Balance Sheet if these two Balance Day Adjustment journals are not posted/ processed. You must conclude what overstatement or understatement would result in both the Income Statement and Balance Sheet. 30 June 2020 (dr) Rent Revenue $5,580 (cr) Unearned Rent Revenue $5,580 (to record the unearned rent revenue) 30 June 2020 (dr) Insurance Expense $990 (cr) Prepaid Insurance $990 (to record the prepaid insurance expired for June )
Using the Balance Day Adjustment journals below as an example, identify and explain the potential impacts on the Income Statement and Balance Sheet if these two Balance Day Adjustment journals are not posted/ processed. You must conclude what overstatement or understatement would result in both the Income Statement and Balance Sheet. 30 June 2020 (dr) Rent Revenue $5,580 (cr) Unearned Rent Revenue $5,580 (to record the unearned rent revenue) 30 June 2020 (dr) Insurance Expense $990 (cr) Prepaid Insurance $990 (to record the prepaid insurance expired for June )
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10P: At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2...
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- Using the Balance Day Adjustment journals below as an example, identify and explain the potential impacts on the Income Statement and Balance Sheet if these two Balance Day Adjustment journals are not posted/ processed. You must conclude what overstatement or understatement would result in both the Income Statement and Balance Sheet.
30 June 2020 (dr) Rent Revenue $5,580
(cr) Unearned Rent Revenue $5,580
(to record the unearned rent revenue)
30 June 2020 (dr) Insurance Expense $990
(cr) Prepaid Insurance $990
(to record the prepaid insurance expired for June )
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