please give explanation thank you 1.Bread Basket provides baking supplies to restaurants and grocery stores. On November 1, 2020, Bread Basket signed a 700,000, 6-month note payable. The note requires Bread Basket to pay interest at an annual rate of 6%. Bread Baskets accountant is a recent college graduate who lacks practical experience. Therefore, the appropriate adjusting entry is not made. What is the impact on its December 31, 2020 statement of financial position?

a. Assets are overstated by 21,000.

b. Equity is overstated by 21,000.

c. Liabilities are understated by 21,000.

d. Liabilities are understated by 7,000.

167. Iron Inn is a resort located in Canada. During December 2020 Spin Jammers held its annual conference at the resort. The charges related to the conference total 400,000, of which 25% has been paid by Spin Jammers. When Iron Inn makes the appropriate adjusting entry, which of the following is a part of the adjustment made to its December 31, 2020 statement of financial position?

a. Debit Cash 300,000.

b. Credit Revenue 300,000.

c. Credit Cash 300,000.

d. Debit Cash and credit Revenue 300,000.