You recently completed a Critical Thinking Assignment where you prepared adjusting entries (deferrals and accruals).

In this metacognition assignment, select one adjusting entry from that Critical Thinking Assignment. Specifically identify how the financial statements would be affected if that adjusting entry is not recorded?

Specifically identify which element(s) on each statement is affected, and how it is affected (under or overstated). Identify all accounts affected on each statement.

Income Statement
Balance Sheet
What accounting principle(s) is applied when preparing adjusting entries?
When preparing adjusting entries what must be considered in your analysis. Include a reflection on your own problem solving / analysis process.