If Dillon had not recorded the adjusting entries, indicate which specific category of accounts on the financial statements would be misstated and if the misstatement is overstated or understated.

Specific Catergory of Accounts on the Balance Sheet can be a) Assets b) Equity or c) Liability

Specific Category of Accounts on the Income Statement can be a) Expense or b) Revenue

Use the following entries:

Specific Category of Accounts on the Balance Sheet Specific Category of Accounts on the Income Statement Over / Adjusting Entry Over / Understated Understated