Using the Table Below, Indicate the Impact of the Following

question 61

Essay

Using the table below, indicate the impact of the following errors made during the adjusting entry process. Use a "+" for overstatements, a "-" for understatements, and a "0" for no effect. The first one is provided as an example. $$\begin{array} { | l | l | c | c | c | c | c | } \hline & \text { Error } & \text { Revenues } & \text { Expenses } & \text { Assets } & \text { Liabilities } & \text { Equity } \\\hline \text { Ex } & \text { Did not record depreciation for this period } & 0 & - & + & 0 & + \\\hline \text { 1. } & \text { Did not record unpaid telephone bill } & & & & & \\\hline \text { 2. } & \begin{array} { l } \text { Did not adjust unearned revenue acoount for revenue } \\\text { earned this period. }\end{array} & & & & & \\\hline \text { 3. } & \text { Did not adjust shop supplies for supplies used this period } & & & & & \\\hline \text { 4. } & \text { Did not accrue employee salaries for this period } & & & & & \\\hline \text { 5. } & \begin{array} { l } \text { Recorded rent expense owed with a debit to insurance } \\\text { expense and a credit to rent payable }\end{array} & & & & & \\\hline\end{array}$$

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Definitions:

Monetary Policy

Monetary policy involves the management of a nation's money supply and interest rates by the central bank to control inflation, stabilize currency, and achieve economic growth.

Fiscal Policy

Government policy that attempts to influence the economy through changes in government spending and taxes.

Aggregate Demand

Aggregate Demand is the total demand for all goods and services within an economy at a given overall price level and in a given time period.

Money Supply

The global sum of money available in an economy at a particular instance, including all forms of cash, coins, and the contents of checking and savings accounts.