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: $5,869 of unpaid interest expense on a bank loan $1,897 of wages that were earned by employees but not paid $3,411 of rent and insurance that had expired $7,746 of depreciation 8 pt. What was the effect of these entries on Retained Earnings in October? 7. AO s-8,043 $10,698 cos-14,228 DO$-18,923 EO8-25,168 FO$33,473 8 pt 8. What was the effect of these entries on total equities in October? 8. AO $-11,157 BO $-13,054 CO 8-15,273 DO $-17,869 EO 20,907 FO $-24,461 8 pt X Company prepares monthly financial statements. The company received its bill from the utility company in June but 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) correct; 3) understated CO 1) correct; 2) understated; 3) overstated DO 1) overstated; 2) overstated; 3) understated EO 1) overstated; 2) correct; 3) overstated FO 1) understated; 2) overstated; 3) correct Licensed snder GNU General Publle Lie Printed from LON-CARACMSU