Questions 7 and 8 refer to the following entries: X Company prepares monthly financial statements. On October 31, its accountant made adjusting entries to recognize $5,599 of unpaid interest expense on a bank loan $1,445 of wages that were earned by employees but not paid $3,855 of rent and insurance that had expired $7,954 of depreciation 8 pt 7. What was the effect of these entries on Retained Earnings in October? 7. AO S-15,082 BO S-18,853 CO S-23,566 DO S-29,458 EO $-36,822 FO $-46,028 8 pt 8. What was the effect of these entries on total equities in October? 8. AO 8-6,046 B $-7,558 CO s-9,447 DO-11.809 EO s4,761 FO $18,452 8 pt X Company prepares monthly financial statements. The company received its bill from the utility company in June t did not pay it until July. Its accountant failed to record the utility expense in June, but instead recorded it in July when it was paid. As a result, which of the following is true regarding 1) total assets on June 30 2) total liabilities on June 30 3) Net Income for June 9.AO 1) understated; 2) understated; 3) correct BO 1) correct; 2) understated; 3) overstated C0 1) overstated; 2) correct; 3) overstated DO 1) overstated; 2) overstated; 3) understated EO 1) understated; 2) overstated; 3) correct FO 1) correct; 2) correct; 3) understated