Question

Tatting Services has an inexperienced bookkeeper. During the year end process of preparing adjusting journal entries, the following events and transactions occurred 1 Work performed but not yet billed was not accrued because payment had not yet been received 2. No interest was accrued on a note payable because the next payment of interest was in May of the next fiscal year. 3. There was no accrual for wages owing recorded at the end of the year. 4. A utility bill for the month of December was not recorded because it was due in January 5. An accrual for rent revenue was debited to rent receivable and credited to rent expense. Using the table below, indicate the effects on financial statement elements for each of these errors made during the adjusting entry portion of the accounting cycle. If an event is not an error, or if an element is not affected, enter NE for no effect. Indicate an overstatement with OVER and an understatement with UNDER. If an element has both an overstatement and an understatement, choose OVER/UNDER. abilities Owner's Equity Profit Assets Item Revenues Expenses NE NE NE NE NE NE NE NE NE NE NE NE

Answer 1