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Events Income Statement Balance Sheet While analyzing the adjusting entries at the end of the accounting...

Events Income Statement Balance Sheet While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to prepaid insurance. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustments relating to the depreciation of plant assets. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to unearned revenue. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to an accrued expense. The failure to post the related adjusting entry will cause the following misstatements: While analyzing the adjusting entries at the end of the accounting period, the company overlooks the adjustment relating to an accrued revenue. The failure to post the related adjusting entry will cause the following misstatements: Slide 17 Slide 17 17of18

Solutions

Expert Solution

.1 Overlooking the adjustment relating to prepaid insurance:

This will result in understatement of insurance expenses and overstatement of assets.

As a result the income will be overstated

2. Overlooking the adjustments relating to the depreciation of plant assets:

This will result in understatement of expenses and overstatement of Income.

This will also lead to overstatement of carrying value of plant assets

.3 Overlooking the adjustment relating to unearned revenue:

This will result in understatement of Income and overstatement of liabilities

.4 Overlooking the adjustment relating to an accrued expense:

This will result in understatement of expenses and overstatement of Income.

This will also result in understatement of liabilities since these are not recognized.

.5 Overlooking the adjustment relating to an accrued revenue:

This will result in understatement of income and understatement of assets

ekkarill92 answered 1 year ago
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