Question 1) Your company purchased $2,000 of supplies and recorded the amount as an asset. At year-end, a physical count shows $700 of supplies on hand. Before closing the books, it is discovered that an adjusting entry was never made. If no correcting entry is made,

		assets will be overstated and net income will be overstated
		assets will be understated and net income will be overstated
		the balance sheet will be accurate, but the income statement will be understated
		assets will be understated and net income will be understated
		assets will be overstated and net income will be understated
		the income statement will be accurate, but the balance sheet will be understated

Question 2) Accrual and deferral errors:

		can affect different statements; it depends on the type of the error
		affect the balance sheet only
		affect both the income statement and the balance sheet
		affect the income statement only

Question 3) On March 1, 20X1, your calendar year company borrows $10,000. Terms require repayment of principal and annual interest of 9% after 4 years. At year-end 20X1, an adjusting entry was made that accrued $550 interest expense. If you discover the error before the books are closed, what correcting entry needs to be made?

		debit Interest Expense for $550; credit Interest Payable for $550
		debit Interest Expense for $200; credit Interest Payable for $200
		debit Interest Payable for $200; credit Interest Expense for $200
		debit Interest Expense for $350; credit Interest Payable for $350
		debit Interest Payable for $350; credit Interest Expense for $350
		debit Interest Payable for $550; credit Interest Expense for $550

Question 4) On September 1, 20X8, your calendar year company pays $2,400 for 12 months insurance, recording the amount as an expense. Just before closing the books, you realize that no adjusting entry was recorded. Without it,

		assets will be understated and net income will be overstated
		the financial statements will be accurate because no adjusting entry was necessary
		assets will be overstated and net income will be overstated
		assets will be overstated and net income will be understated
		assets will be understated and net income will be understated

Please answer all the questions and don't skip any, and please make sure that those answers are are correct. I will upvote you PLEASE