For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that
Fantastic news! We've Found the answer you've been seeking!
Question:
For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000 that expired. For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income?
: expenses are overstated by $6,500
: net income is overstated by $2,300
: revenues are overstated by $4,200
: expenses are understated by $3,500
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date: