ABC Company omitted two adjusting entries at year end , December 31, 20X3

A physical count of supplies revealed that $4,000 of supplies had been used but no adjusting entry was made to account for this.

Interest was not accrued on an 8%, $12,000 note payable that was borrowed on October 1, 20X3.

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If these two omission errors are discovered before the 20X3 books have been closed, it will most likely be because...

A.the trial balance would be out of balance by $4,240

B.the balance sheet would not balance

C.the trial balance would be out of balance by $3,760

D.none of the above

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The types of errors listed above are known as...

A.the supplies error is an accrual error and the interest error is an accrual error

B.the supplies error is a deferral error and the interest error is an accrual error

C.the supplies error is a deferral error and the interest error is a deferral error

D.the supplies error is an accrual error and the interest error is a deferral error

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If the two omission errors are discovered before the books are closed, the adjusting

entry (entries) will include...

A.a credit to Office Supplies Expense

B.a credit to Interest Expense

C.a debit to Office Supplies

D.a credit to Interest Payable