Homework Answers
option " D " is correct
Explanation
Journal entry for accrued revenue on recognition (i.e when goods sold on credit ) would be
| Accured revenue a/c Dr | $ 8600 | - |
| To income a/c | - | $ 8600 |
1.The Debit of accured revenue would increase accounts receivable by $8600, and there by credit for income would increase by $8600.
2. Journal entry for accrued revenue adjustment ( i.e realiation from debtors/accounts receivable) would be
| Cash / Bank a/c Dr | $8600 | - |
| To Accrued revenue | - | $8600 |
The amount has been received either by cash or direct credit to the bank account , since an adjustment for accured revenue has been omitted , it means that the Accured revenue is still lying in our books which has not been reversed and still reflecting as receivable.
Conclusion
The balance of accured revenue is thus overstated in our financial statement by $8600.
Add Answer to:
If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial...
If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial...
If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.
If an adjustment for accrued income is omitted from the financial reports the effect is: Select...
If an adjustment for accrued income is omitted from the financial reports the effect is: Select one: O a. assets are overstated; profit is understated. O b. assets are understated; profit is overstated. O c. assets are overstated; profit is overstated. O d. assets are understated profit is understated
If an adjustment for depreciation is omitted from the financial reports the effect is: Select one:...
If an adjustment for depreciation is omitted from the financial reports the effect is: Select one: O a. Assets are understated; profit is understated O b. Assets are overstated; profit is understated O c. Assets are understated; profit is overstated O d. Assets are overstated; profit is overstated
If the following adjusting entry is omitted, what effect will it have on the financial statements?...
If the following adjusting entry is omitted, what effect will it have on the financial statements? 1,900 Unearned Rent Rent Revenue 1,900 a. Revenues will be overstated by $1,900. O b. There will be no effect on net income. c. There will be no effect on liabilities. d. Revenues will be understated by $1,900.
If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity...
If the accrued revenues adjustment was not made, Select one: a. liabilities will be understated, equity overstated, and revenues understated. b. assets will be understated, equity understated and revenue understated. c. assets will be overstated, equity overstated, and revenues understated. d. liabilities will be overstated, equity understated and revenues understated.
If the following adjusting entry is omitted, what effect will it have on net income? 4,300...
If the following adjusting entry is omitted, what effect will it have on net income? 4,300 Depreciation Expense Accumulated Depreciation 4,300 O a. Net income will be understated by $4,300. O b. It will have no effect on net income. O c. Net income will be overstated by $8,600. O d. Net income will be overstated by $4,300. The adjusting entry to record accrued expenses O a. includes a debit to a payable account. O b. is the same journal...
During the adjusting process two transactions were neglected or omitted. The first is for unearned rent...
During the adjusting process two transactions were neglected or
omitted. The first is for unearned rent revenue of which $415 was
earned during the period, the second was for accrued interest
payable of which $275 is owed for the period. As a result of these
omissions
During the adjusting process two transactions were neglected or omitted. The first is for unearned rent revenue of which $415 was earned during the period, the second was for accrued interest payable of which...
Question 7 4 points There was no adjustment made for accrued wages on 31 December. This...
Question 7 4 points There was no adjustment made for accrued wages on 31 December. This was an error. The amount of wages eamed in December but not payable until the first week in January following year was $600. If this error is not discovered before the financial statements are prepared: assets as of 31 December will be overstated. liabilities as of 31 December will be overstated. net income will be overstated by $600. net income will be understated by...
If the adjustment for depreciation is not recorded a. assets are understated. O b. net income...
If the adjustment for depreciation is not recorded a. assets are understated. O b. net income is overstated. c. net income is correctly stated. O d. revenues are overstated.
Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1)...
Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Accrued Revenues Assets Understated Revenues Understated (b) Store supplies of $160 are on hand. The supplies account shows a...
If an adjustment for $8,600 in accrued revenues is omitted, how will this affect the financial statements? O a. Net income will be understated by $8,600. O b. There will be no effect on the financial statements. O c. Net income will be overstated by $8,600. O d. Accounts Receivable will be overstated by $8,600.
If an adjustment for accrued income is omitted from the financial reports the effect is: Select one: O a. assets are overstated; profit is understated. O b. assets are understated; profit is overstated. O c. assets are overstated; profit is overstated. O d. assets are understated profit is understated
If an adjustment for depreciation is omitted from the financial reports the effect is: Select one: O a. Assets are understated; profit is understated O b. Assets are overstated; profit is understated O c. Assets are understated; profit is overstated O d. Assets are overstated; profit is overstated
If the following adjusting entry is omitted, what effect will it have on the financial statements? 1,900 Unearned Rent Rent Revenue 1,900 a. Revenues will be overstated by $1,900. O b. There will be no effect on net income. c. There will be no effect on liabilities. d. Revenues will be understated by $1,900.
If the following adjusting entry is omitted, what effect will it have on net income? 4,300 Depreciation Expense Accumulated Depreciation 4,300 O a. Net income will be understated by $4,300. O b. It will have no effect on net income. O c. Net income will be overstated by $8,600. O d. Net income will be overstated by $4,300. The adjusting entry to record accrued expenses O a. includes a debit to a payable account. O b. is the same journal...
During the adjusting process two transactions were neglected or
omitted. The first is for unearned rent revenue of which $415 was
earned during the period, the second was for accrued interest
payable of which $275 is owed for the period. As a result of these
omissions
During the adjusting process two transactions were neglected or omitted. The first is for unearned rent revenue of which $415 was earned during the period, the second was for accrued interest payable of which...
Question 7 4 points There was no adjustment made for accrued wages on 31 December. This was an error. The amount of wages eamed in December but not payable until the first week in January following year was $600. If this error is not discovered before the financial statements are prepared: assets as of 31 December will be overstated. liabilities as of 31 December will be overstated. net income will be overstated by $600. net income will be understated by...
If the adjustment for depreciation is not recorded a. assets are understated. O b. net income is overstated. c. net income is correctly stated. O d. revenues are overstated.
Wang Company accumulates the following adjustment data at December 31. For each item, indicate the (1) type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). (Enter your answers in alphabetical order.) (1) Type of Adjustment (2) Accounts Before Adjustment (a) Services performed but unbilled totals $600. Accrued Revenues Assets Understated Revenues Understated (b) Store supplies of $160 are on hand. The supplies account shows a...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago