The unadjusted trial balance and the adjustment data for Porter Business Institute are given below along with adjusting entry information.What is the impact on net income if these adjustments are not recorded? Show the calculation for net income without the adjustments and net income with the adjustments.Which one gives the most accurate net income? Which accounting principles are being violated if the adjustments are not made?
Additional information items:
a.The Prepaid Insurance account consists of a payment for a 1 year policy.An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the December 31 year-end.
b.A cash payment for space sublet for 8 months was received on July 1 and was credited to Unearned Rent.
c.Accrued interest expense on the note payable of $1,000 has been incurred but not paid.
Definitions:
Unconditioned Response
A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.
Stimulus Discrimination
The ability to distinguish between different stimuli, learning to respond to one stimulus but not to similar others.
Chihuahuas
A small dog breed originating from Mexico, known for its small size, big ears, and spirited personality.
Terrified
Experiencing extreme fear or terror, often as a response to a perceived threat or danger.
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