[APetit0786]

Identify the effect omitting each of the following items would have on the balance sheet.

A. Assets and stockholders’ equity overstated
B. Liabilities understated and stockholders’ equity overstated
C. Assets and stockholders’ equity understated
D. Liabilities overstated and stockholders’ equity understated
E. Assets overstated and stockholders’ equity understated
F. Assets understated and stockholders’ equity overstated
G. Liabilities and stockholders’ equity overstated
H. Liabilities and stockholders’ equity understated

Property taxes are paid annually. The estimated monthly amount for the taxes was not recorded.

Attorney has earned 1/2 of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned.

Depreciation on equipment was not recorded.

Interest earned on a note receivable was not recorded.

Wages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded.

Services provided to customers on the last day of the month were not billed.

A tenant paid 6-months’ rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

No adjustment was made for supplies used up during the month.

[paraclete]

What is it you want to know?

[APetit0786]

Identify the effect omitting each of the following items would have on the balance sheet.

A. Assets and stockholders' equity overstated
B. Liabilities understated and stockholders' equity overstated
C. Assets and stockholders' equity understated
D. Liabilities overstated and stockholders' equity understated
E. Assets overstated and stockholders' equity understated
F. Assets understated and stockholders' equity overstated
G. Liabilities and stockholders' equity overstated
H. Liabilities and stockholders' equity understated

Property taxes are paid annually. The estimated monthly amount for the taxes was not recorded.

Attorney has earned 1/2 of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned.

Depreciation on equipment was not recorded.

Interest earned on a note receivable was not recorded.

Wages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded.

Services provided to customers on the last day of the month were not billed.

A tenant paid 6-months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month.

No adjustment was made for supplies used up during the month.

[paraclete]

Repeating the question doesn't make it any clearer, we don't provide model answers, if you have a specific query after attempting the problem we will help after you post your answer

[Markaisa]

I need to identify the effect omitting each of the following items would have on the balance sheet . A tenant paid 6 months rent in advance in on the first day of the month. No entry was made on the last day of the month

[pready]

You need to think about what the journals entries are and what the journal entries should be.
So somebody paid you for 6 months of rent, what is the journal entry? You would Debit Cash and Credit Unearned Revenue, both of which are Balance Sheet accounts.

The journal entry for one month of rent should be: Debit Unearned Revenue and Credit Rent Revenue, one is a Balance Sheet account and one is an Income Statement account.

Now you know what the journal entries are and what they should be you need to figure out the effect of not making the second journal entry has on your financial statements. So since you did not reduce your balance sheet account (Unearned Revenue, which is a libility) and you did not increase your Revenues your liabilities are overstated and your revenues are understated. Since your revenues are understated, your Net Income will be understated, your Retained Earnings will be understated, and ultimately your Owners Equity will be understated.