Error Correction, Bonus Problem

Acct $2220$

You are reviewing Piglet Co$.\text{'}$s adjusted trial balance for the year ended $12/31/2023.$ You notice several omissions and incorrect items during your review, some of which are noted below.

For each one, you are to determine what effect, if any, these items would have on the stated components of Piglet Co$.\text{'}$s $2023$ Income Statement and $12/31/2023$ Balance Sheet if they are not corrected or updated. Assume, no income taxes. Piglet Co$.$ uses the accrual basis of accounting.

Use the following code for your answers. You need not include any dollar amounts.

N $=$ No Effect

O $=$ Overstated

U $=$ Understated

Additional Information $12/31/23$ Assets $12/31/23$ Liabilities $12/31/23$ Retained Earnings $2023$

Net Income

Estimated uncollectible accounts of $$1,750$ are estimated at the end of the year and recorded as a debit to Bad Debt Expense and a credit to Accounts Receivable.

The journal entry for depreciation on equipment for $2023$ was recorded as $$25,000.$ It should have been $$35,000.$

No journal entry was made for the cash dividends declared and paid in December $2023.$

$$10,000$ of the rent revenue collected and recorded as earned in $2023$ will be earned $2024.$

Interest earned during the year on a note receivable was not yet collected or recorded.

Supplies purchased during the year for $$375$ cash were recorded by a debit to Supplies Expense and a credit to Cash. Only $$50$ of supplies remain at the end of the year, but no further entries have been made.