At the End of the Fiscal Year, the Following Adjusting

question 155

Essay

At the end of the fiscal year, the following adjusting entries were omitted:
(a)No adjusting entry was made to transfer the $1,750 of prepaid insurance from the asset account to the expense account.(b)No adjusting entry was made to record accrued fees of $525 for services provided to customers.Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert "0" if the error does not affect the item.

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Definitions:

Propositions

Statements or assertions that express opinions or judgments which can be true or false.

Mental Image

a representation of sensory experience in the mind, which can be visualized despite the absence of the actual stimulus.

Duck/Rabbit

An ambiguous figure that can be perceived as either a duck or a rabbit depending on the viewer's perspective, often used to illustrate the concept of perceptual set in psychology.

Predicate

In grammar, it is the part of a sentence or clause containing a verb that states something about the subject.