O ADJUSTING ENTRIES Effects of adjusting entries on financial statements: Problem typ... On December 31, Bell Company receives a utility bill in the mail for $820. Bell Company intends to pay the bill in early January or next year. If the appropriate adjusting.entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net Income (overstated, understated, or no effect)? (C) Balance sheet accounts (overstated, understated, or no effect)? Income Statement Accounts Revenue Choose One Expen Choose One Net Income Choose One Balance Sheet Accounts Choose One Gabrities Choose One Retained Eminos: Choose One