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:

Anvil

A heavy iron or steel block on which metals are hammered and shaped during forging processes.

Diabetic Retinopathy

A diabetic complication that affects the eyes, characterized by damage to the blood vessels of the light-sensitive tissue at the back of the eye (retina).

Conjunctiva

A mucous membrane that lines the eyelids and covers the anterior sclera of the eyeball.

Mucous Membrane

A layer of cells lining body cavities or passages that are open to the external environment, producing mucus to protect and lubricate surfaces.