An adjusted trial balance of Afif & Associates (a legal firm) on 31 October 2021 is as follows: Accounts Debit (RM) Credit (RM) Cash 19,500 Notes Receivable, Short-term 61,000 Rent Receivable 1,500 Office Supplies 13,750 Prepaid Insurance 2,750 Office Equipment 15,000 Accumulated Depreciation – Office Equipment 12,500 Accounts Payable 15,750 Wages Payable 2,250 Unearned Revenue 15,000 Notes Payable, Long-term 25,000 Capital 80,000 Drawings 27,500 Service Revenue 40,250 Rent Revenue 5,500 Wages Expense 38,250 Insurance Expense 6,250 Office Supplies Expense 3,750 Depreciation Expense 2,500 Miscellaneous Expense 4,500 196,250 196,250 REQUIRED: If Afif & Associates failed to make the following adjusting entries at 31 October 2021, what would happen to its net income? i. Rent Revenue RM5,500 ii. Insurance Expense RM6,250 iii. Depreciation Expense RM2,500 Select one: A. Understated of net income by RM5,500 B. Overstated of net income by RM3,250 C. Overstated of net income by RM8,750 D. Understated of net income by RM3,250
An adjusted trial balance of Afif & Associates (a legal firm) on 31 October 2021 is as follows: Accounts Debit (RM) Credit (RM) Cash 19,500 Notes Receivable, Short-term 61,000 Rent Receivable 1,500 Office Supplies 13,750 Prepaid Insurance 2,750 Office Equipment 15,000 Accumulated Depreciation – Office Equipment 12,500 Accounts Payable 15,750 Wages Payable 2,250 Unearned Revenue 15,000 Notes Payable, Long-term 25,000 Capital 80,000 Drawings 27,500 Service Revenue 40,250 Rent Revenue 5,500 Wages Expense 38,250 Insurance Expense 6,250 Office Supplies Expense 3,750 Depreciation Expense 2,500 Miscellaneous Expense 4,500 196,250 196,250 REQUIRED: If Afif & Associates failed to make the following adjusting entries at 31 October 2021, what would happen to its net income? i. Rent Revenue RM5,500 ii. Insurance Expense RM6,250 iii. Depreciation Expense RM2,500 Select one: A. Understated of net income by RM5,500 B. Overstated of net income by RM3,250 C. Overstated of net income by RM8,750 D. Understated of net income by RM3,250
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter22: End-of-fiscal-period Work For A Corporation
Section: Chapter Questions
Problem 1AP
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Question
51. An adjusted trial balance of Afif & Associates (a legal firm) on 31 October 2021 is as follows:
Accounts
Debit (RM)
Credit (RM)
Cash
19,500
Notes Receivable, Short-term
61,000
Rent Receivable
1,500
Office Supplies
13,750
Prepaid Insurance
2,750
Office Equipment
15,000
Accumulated Depreciation – Office Equipment
12,500
Accounts Payable
15,750
Wages Payable
2,250
Unearned Revenue
15,000
Notes Payable, Long-term
25,000
Capital
80,000
Drawings
27,500
Service Revenue
40,250
Rent Revenue
5,500
Wages Expense
38,250
Insurance Expense
6,250
Office Supplies Expense
3,750
Depreciation Expense
2,500
Miscellaneous Expense
4,500
196,250
196,250
REQUIRED:
If Afif & Associates failed to make the following adjusting entries at 31 October 2021, what would happen to its net income?
i. Rent Revenue RM5,500
ii. Insurance Expense RM6,250
iii. Depreciation Expense RM2,500
Select one:
A. Understated of net income by RM5,500
B. Overstated of net income by RM3,250
C. Overstated of net income by RM8,750
D. Understated of net income by RM3,250
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