Questions 7 and 8 refer to the following entriess X Company prepares monthly financial statements. On October 31, its accountant made adjusting entries to recopise $5,767 of unpaid interest expense on a bank lows $1,332 of wages that were earned by employees but not paid $3,501 of rent and insurance that had expired $7,143 of depreciation Spt. What was the effect of these entries on Retained Earnings in October? 7 AO S 11356 BO $-14,194 CO -17,743 DO -22,179 EO $-27,723 FO $-34,654 8ps What was the effect of thee entries on total equities in October? 8. AO $ 7,776 BO $-9,097 CO -10,644 DO -12,453 EO s 14,571 FO -17048 X Company prepares monthly financial statements. The company received its bill from the utility company in June did not pay it until July. Its accountant failed to record the utility expense in June, bat instead recorded it in July when it was paid. As a result, which of the tollowing is true regarding 1) total assets on June 30 2) total liabilities on June 30 3) Net Income for June 9.AO 1) correct; 2) understated; 3) overstated BO 1) understated; 2) overstated; 3) correct CO 1) overstated: 2) overstated; 3) understated DO 1) understated; 2) understated; 3) correct EO 1) correct; 2) correct; 3) understated FO 1) overstated; 2) correct; 3) overstated LON CARAMSU