Adjusting Entries Assignment 2. 1. A company issued financial statements for the year ended December 31 but failed to include the following adjusting entries: A. Accrued service fees earned of $2,200. B. Depreciation expense of $8,000. C. Portion of office supplies (an asset) used, $3,100. D. Accrued salaries of $5,200. E. Revenues of 87,200, originally recorded as unearned, have been earned by the end of the year. Explain how each of these omissions would affect (a) the Income Statement and (b) the Balance Sheet. Effect on Income Statement Effect on Balance Sheet a b OO d e 2. Using the following table indicate the impact of the following errors made during the adjusting entry process. Use a "+" for overstatements, a"-"for understatements and a "0" for no effect. The first one is provided as an example: Revenues Expenses Assets 0 Liabilities 0 Equity + Error Ex. Did not record depreciation for this period 1. Did not record unpaid utility bill 2. Did not adjust uncared revenue account for revenue eamed this period 3. Did not adjust office supplies for supplies used this period. Did not accrue employees wages for this period 5. Recorded rent expense with a debit to salary expense and a credit to rent payable 3. 4