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Suppose that Laramie Company's adjusted trial balance ignored the following information. For each item of information, indicate what effects, if any, these omissions would have
Suppose that Laramie Company's adjusted trial balance ignored the following information. For each item of information, indicate what effects, if any, these omissions would have on the stated components of Laramie Company's 2018 Income Statement and 12/31/18 Balance Sheet. Assume no income taxes. Use the following code for your answers and be sure to include the dollar amounts of the effects next to the letter O or U: N = No Effect O = Overstated U = Understated
2) 12/31/1812/31/18 12/31/18 LiabilitiesOwners' Equity Net Income 2018 Additional Information Assets 2,000 interest on a loan was not yet paid r recorded 3) 12/31/18 LiabilitiesOwners' Equity Net Income 12/31/1812/31/18 2018 Additional Informatio Assets he estimated uncollectible accounts receivable is now zero nd should be $25,000. 4) 12/31/1812/31/18 12/31/18 Liabilities Owners' Equity Net Income 2018 Additional Information Assets 10,000 of the paid and recorded rent expense pertains to the year 2019. 5) 12/31/18 LiabilitiesOwners' Equity Net Income 12/31/1812/31/18 2018 Additional Informatio Assets 20,000 in depreciation n some equipment as still unrecorded. 6) 12/31/18 12/31/18 12/31/18 Liabilities Owners' Equity Net Income 2018 Additional Information $4,000 in cash dividends declared and paid in December 2018 Assets ere unrecordedStep by Step Solution
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