Question
Effect of Omitting Adjustments For the year ending August 31, Mann Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $7,600, (2) fees earned
Effect of Omitting Adjustments
For the year ending August 31, Mann Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $7,600, (2) fees earned that were not billed of $11,700, and (3) accrued wages of $2,500. Indicate the effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended August 31.
| (a) Revenues | understatedoverstated | $fill in the blank 2 |
| (b) Expenses | understatedoverstated | $fill in the blank 4 |
| (c) Net income | understatedoverstated | $fill in the blank 6 |
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
