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, which were previously recorded as liabilities, had been earned by year-end.
1. Failed to accrue salaries expense of $1,200.
2. Forgot to record $2,700 of depreciation on office equipment.
3. Failed to accrue $300 of interest on a note receivable.
Definitions:
Direct Labor Hours
The total hours worked directly on producing a product or delivering a service, often used as a basis for allocating manufacturing overhead to products or services.
Engineering Changes
Modifications to the design, materials, or specifications of a product or system, often made to improve performance, reduce costs, or correct defects.
Indirect Cost
Expenses not directly tied to the production of goods or services, such as administrative salaries, rent, and utilities.
Days' Payable Outstanding
A financial metric that calculates the average time it takes a company to pay its invoices from suppliers, reflecting its payment process efficiency.
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