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Given the table below,indicate the impact of the following errors made during the adjusting entry process.Use a "+" followed by the amount for overstatements,a "-" followed by the amount for understatements,and a "0" for no effect.The first one is done as an example.
Ex.Failed to recognize that $600 of unearned revenues,previously recorded as liabilities,had been earned by year-end.
1.Failed to accrue interest expense of $200.
2.Forgot to record $7,700 of depreciation on machinery.
3.Failed to accrue $1,300 of revenue earned but not collected.
Common Stock
A type of stock representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.
Dividends
Payments made by a corporation to its shareholder members, usually out of profits or reserves.
Working Capital
Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.
Current Ratio
An indicator of financial health showing whether a business can cover its short-term debts with assets that can be quickly converted into cash.
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