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At the End of April, the First Month of the Year

question 87

Essay

At the end of April, the first month of the year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated.


Definitions:

Eardrum

A thin membrane that marks the beginning of the middle ear; sound waves cause the eardrum to vibrate.

Cochlea

A coiled, bony, fluid-filled tube in the inner ear that houses the sensory receptors.

Auditory Nerve

The nerve that transmits auditory information from the cochlea in the inner ear to the brain.

Higher-Frequency Sounds

Sounds that have a higher pitch due to their faster vibration rates, typically above the normal human hearing range of 20 to 20,000 hertz.

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