Question Content Area

Complete the missing items in this summary of adjustments chart:

PREPAID EXPENSES

Examples Adjusting Entry Financial Statement Impact

if Adjusting Entry Is Omitted

Supplies, $($a$)$ Dr$.$ Expense Income Statement:

Cr$.$ Asset Revenues: No effect

Expenses: Understated

Net income: $($b$)$

Balance Sheet:

Assets: $($c$)$

Liabilities: $($d$)$

Owner's equity: Overstated

UNEARNED REVENUES

Examples Adjusting Entry Financial Statement Impact

if Adjusting Entry Is Omitted

Unearned rent, $($e$)($f$)$ Income Statement:

Revenues: $($g$)$

Expenses: No effect

Net income: $($h$)$

Balance Sheet:

Assets: $($i$)$

Liabilities: Overstated

Owner's equity: $($j$)$

ACCRUED REVENUES

Examples Adjusting Entry Financial Statement Impact

if Adjusting Entry Is Omitted

Interest income due on a note, $($k$)$ Dr$.$ Asset Income Statement:

Cr$.$ Revenue Revenues: $($l$)$

Expenses: $($m$)$

Net income: Understated

Balance Sheet:

Assets: $($n$)$

Liabilities: $($o$)$

Owner's equity: Understated

ACCRUED EXPENSES

Examples Adjusting Entry Financial Statement Impact

if Adjusting Entry Is Omitted

Interest due on a note payable, $($p$)($q$)$ Income Statement:

Revenues: No effect

Expenses: $($r$)$

Net income: $($s$)$

Balance Sheet:

Assets: $($t$)$

Liabilities: Understated

Owner's equity: $($u$)$