2Indicate the impact on the income statement and balance sheet if the following adjusting entries were omitted. You should indicate which of the items shown would be overstated or understated. An attorney has earned 1/2 of a retained fee that was received and recorded last month. No adjustment was recorded for the amount earned. A B I Revenue Expenses = Net Income Assets = Liabilities + Owner's Equity Understated/Overstated

Indicate the impact on the income statement and balance sheet if the following adjusting entries were omitted. You should indicate which of the items shown would be overstated or understated. An attorney has earned 1/2 of a retained fee that was received and recorded last month. No adjustment was recorded for the amount eamed