Questions 7 and 8 refer to the following entries: X Company prepares monthly fimancial statements. On October 31, its accountant made adjusting entries to $5,534 of unpaid interest expense on a bank loan . $1,773 of wages that were earned by employees bat not paid- $3,684 of rent and insuranice that had expired $7,261 of depreciation 8pt. What was the effect of these entries on Retained Earnings in October? 7. AO $-14,602 BO S-18,252 CO $22,815 DO$28,519 EO $-35,648 FO -44,561 8 pts. What was the effect of these entries on total equities in Otober? 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 total assets on June 30 1) 2) total liabilities on June 30 3) Net Income for June 9.AO 1) overstated; 2) correct; 3) overstated BO 1) understated; 2) understated; 3) correct CO 1) correct; 2) correct; 3) understated DO 1) overstated; 2) overstated; 3) understated EO 1) understated; 2) overstated; 3) correct FO 1) correct; 2) understated; 3) overstated