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The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for ( a ) unearned revenue earned during the year
The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for a unearned revenue earned during the year $ and b accrued wages $
Indicate the effect of each error, considered individually, on the income statement for the current year ended July Also indicate the effect of each error on the July balance sheet.
Enter all amounts as positive numbers. Enter in those spaces where there is no overstatement or no understatement.
Error a The adjusting entry for unearned revenue earned during the year $ was omitted.
Line Item Description Overstated Understated
Revenue for the year would be $fill in the blank
$fill in the blank
Expenses for the year would be $fill in the blank
$fill in the blank
Net income for the year would be $fill in the blank
$fill in the blank
Assets at July would be $fill in the blank
$fill in the blank
Liabilities at July would be $fill in the blank
$fill in the blank
Stockholders' equity at July would be $fill in the blank
$fill in the blank
Error b The adjusting entry for accrued wages $ was omitted.
Line Item Description Overstated Understated
Revenue for the year would be $fill in the blank
$fill in the blank
Expenses for the year would be $fill in the blank
$fill in the blank
Net income for the year would be $fill in the blank
$fill in the blank
Assets at July would be $fill in the blank
$fill in the blank
Liabilities at July would be $fill in the blank
$fill in the blank
Stockholders' equity at July would be $fill in the blank
$fill in the blank
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