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

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition where there is no tendency for change.

Total Revenue

A financial measure defining the income generated from business activities or operations without deducting expenses.

Price Rationing

The allocation of goods among consumers using prices, where the goods go to those willing to pay the highest price, often used when demand exceeds supply.

Able

Generally refers to having the capacity, skill, or qualifications to perform an action or task.