173.At January 31, the end of the first
month
of the year, the usual adjusting entry transferring expired insurance to anexpense account is omitted. Which items will be incorrectly stated, because of the error, on (a) the incomestatement for January and (b) the balance sheet as of January 31? Also indicate whether the items in error will beoverstated or understated.
174.At the end of April, the first month of the year, the usual adjusting entry transferring rent earned to a revenueaccount from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because ofthe error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether theitems in error will be overstated or understated.
175.Salaries of $6,400 are paid for a five-day week on Friday. Prepare the adjusting journal entry that is required if themonth ends on Thursday.
176.Accrued salaries of $600 owed to employees for December 29, 30, and 31 are
nottaken into consideration inpreparing the financial statements for the year ended December 31. Indicate which items will be erroneouslystated, because of the error, on (a) the income statement for the year and (b) the balance sheet as of December
31. Also indicate whether the items in error will be overstated or understated.
177.For the year ending December 31, Beard Clinical Supplies Co. mistakenly omitted adjusting entries for (1) $9,800 ofunearned revenue that was earned, (2) earned revenue that was not billed of $10,200, and (3) accrued wages of$7,000. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income.
178.On January 1, Great Designs Company had a debit balance of $1,450 in the office supplies account. During themonth, Great Designs purchased $115 and $160 of office supplies and journalized them to the asset account uponpurchasing. On January 31, an inspection of the office supplies cabinet shows that only $350 of office suppliesremains. Prepare the January 31 adjusting entry for office supplies.