For the year ending August 31, Mammalia Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $5,800, (2) fees earned that were not billed of $44,500, and (3) accrued wages of $7,300. Indicate the effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended August 31. (a) Revenues $fill in the blank 2 (b) Expenses $fill in the blank 4 (c) Net income $fill in the blank 6
For the year ending August 31, Mammalia Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $5,800, (2) fees earned that were not billed of $44,500, and (3) accrued wages of $7,300. Indicate the effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended August 31. (a) Revenues $fill in the blank 2 (b) Expenses $fill in the blank 4 (c) Net income $fill in the blank 6
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter3: Basic Accounting Systems: Accrual Basis
Section: Chapter Questions
Problem 3.16E: Effect of omitting adjustment Assume that the error in Exercise 3-15 was not corrected and that the...
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Effect of Omitting Adjustments
For the year ending August 31, Mammalia Medical Co. mistakenly omitted
| (a) Revenues | $fill in the blank 2 | |
| (b) Expenses | $fill in the blank 4 | |
| (c) Net income | $fill in the blank 6 |
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