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If the adjusting entry for an accrued revenue is not made: liabilities will be understated. equity will be understated. revenues will be overstated. assets will
If the adjusting entry for an accrued revenue is not made: liabilities will be understated. equity will be understated. revenues will be overstated. assets will be overstated. If the entry to close Income Summary to Retained Earnings includes a debit to Income Summary: The company has incurred a net loss. Expenses exceed revenues. Dividends paid exceed the net income earned for the period. Retained Earnings will be increased by the current period's net income. Sheridan Corporation received cash of $33900 on September 1.2025 for one year's rent in advance and recorded the transaction with a credit to Unearned Rent Revenue. The December 31,2025 adjusting entry is debit Unearned Rent Revenue and credit Rent Revenue, $11300. debit Rent Revenue and credit Unearned Rent Revenue. $22600. debit Rent Revenue and credit Unearned Rent Revenue, $11300. debit Cash and credit Unearned Rent Revenue. $22600
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