Adfusting Entries\ On January 2 , Gray Company paid

$24,800

to purchase equipment that has a useful life of 8 years. The equipment will be depreciated equally over the 8-year period as depreciation expense. The cost of

$24,800

is divided by the useful life of 8 years to determine the amount of the yearly depreciation expense of

$3,100

. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on:\ (a) accounts (overstated, understated, or no effect)?\ (b) Net income (overstated, understated, or no effect)?\ (c) Balance sheet accounts (overstated, understated, or no effect)?\ \\\\table[[Income Statement Accounts],[Revenue:,Choose One },{online V],[Expense:,Choose One },{online v],[Net Income:,Choose One },{online v]]\ Balance Sheet Accounts\ Assats:\ Choose One }. {online v\ Labilities:\ Choose One }, {online v

On January 2, Gray Company paid $24,800 to purchase equipment that has a useful life of 8 years. The equipment will be depreciated equally over the 8 -year period as depreciation expense. The cost of $24,800 is divided by the useful life of 8 years to determine the amount of the yearly depreciation expense of $3,100. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no effect)? (c) Balance sheet accounts (overstated, understated, or no effect)