State (1) whether the following failures to record adjusting entries will understate or overstate the net income, and (2) what the effect on the balance sheet will be.

1. Not recording depreciation expense 2. Not adjusting unearned revenue when revenue is earned 3. Not adjusting prepaid rent when rent is used 4. Not recording accrued interest on investments 5. Not recording accrued interest on loans 6. Not recording services rendered, but not yet billed 7. Not recording accrued wages 8. Not recording the electrical expense used, but not yet paid for

OS or US Net Income Balance Sheet Effect

1. 2. 3. 4. 5. 6. 7. 8.