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cannot figure out how to solve for the cumulative effects. any help/answers with steps would be appreciated 0.57 2 pts You've been hired by Desert
cannot figure out how to solve for the cumulative effects. any help/answers with steps would be appreciated 0.57 2 pts You've been hired by Desert Company to review several transactions that were omitted as Adjusting Entries at December 31, 2019, as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below, record the appropriate AJE that would have been required at December 31st. Transactions: A. On May 1st, 2019, Desert paid $180,000 in advance for 18 months rent on its new warehouse. At the time, Desert debited a Nominal Account. B. On August 1st, 2019, Desert received $120,000 cash in advance for services to be provided over the next 6 months. At the time, Desert credited a Rea/account. For your account titles, choose from: Unearned Rent Prepaid Rent Revenue Prepaid Services Revenue Rent Expense Revenue Service Expense Revenue Unearned Service Question 3 0/2 pts Because the bookkeeper did not record either of the adjusting entries associated with Transactions A and B (from the information in Q1 and Q2) on December 31, 2019, determine the cumulative effect of all errors on assets, liabilities, and equity, at December 31, 2019. Answer Format: Use O for overstated, U for understated, and NE for No Effect. Do not space between the O/U/NE and the dollar amount of the error. (Example: If Assets are Over by $2,000, record your answer as 02000) Assets Liabilities Equity Net Income U80000 O20000 NE 0100000 Answer 1
cannot figure out how to solve for the cumulative effects. any help/answers with steps would be appreciated
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