Using the Table Below, Indicate the Impact of the Following

question 167

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.


$\begin{array}{|c|l|c|c|c|c|c|}\hline &{\text { Error }} & \text { Revenues } & \text { Expenses } & \text { Assets } & \text { Liabilities } & \text { Equity } \\\hline \text { Ex. } & \begin{array}{l}\text { Did not record depreciation } \\\text { for this period }\end{array} & 0 & - & + & 0 & + \\\hline \text { 1. } & \begin{array}{l}\text { Did not record unpaid } \\\text { telephone bill }\end{array} \\\hline 2 . & \begin{array}{l}\text { Did not adjust unearned } \\\text { revenue account for revenue } \\\text { earned this period. }\end{array} \\\hline 3 . & \begin{array}{l}\text { Did not adjust shop supplies } \\\text { for supplies used this period }\end{array} \\\hline 4 . & \begin{array}{l}\text { Did not accrue employee } \\\text { salaries for this period }\end{array} \\\hline 5 . & \begin{array} { l } \text { Recorded rent expense owed } \\\text { with a debit to insurance } \\\text { expense and a credit to rent } \\\text { payable }\end{array}\\\hline\end{array}$