The Following Unadjusted Amounts Were Taken from the Accounting Records

question 193

Essay

The following unadjusted amounts were taken from the accounting records of an insurance company at December 31, 2019: ​
A)Prepare any necessary adjusting entries at December 31, 2019, for both of the following transactions:
1.The insurance premiums collected cover the period December 1, 2019, thru May 31, 2020.
2.At the end of the year, an inventory revealed that $250 of the office supplies remained on hand.
B)What is the effect of omitting these adjustments on the current year's net income?

• A)Prepare any necessary adjusting entries at December 31, 2019, for both of the following transactions: 1.The insurance premiums collected cover the period December 1, 2019, thru May 31, 2020. 2.At the end of the year, an inventory revealed that $250 of the office supplies remained on hand.
• B)What is the effect of omitting these adjustments on the current year's net income?

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