Using the Table Below, Indicate the Impact of the Following

question 182

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

Know the powers and limitations of corporate officers and directors within the context of business operations.

Recognize the significance of the corporate veil and circumstances under which it may be pierced.

Differentiate between types of corporations based on incorporation jurisdiction and purpose.

Comprehend the concept of ultra vires acts within corporate actions.

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Definitions:

Total Assets

The sum of all assets, both current and long-term, owned by a business, reported on a company's balance sheet.

Specific Account

An individual account within a larger accounting system that tracks transactions related to a particular item or entity.

Aging

A method used to categorize accounts receivables based on the length of time the invoice has been outstanding to manage and collect debts.