179.For the year ending June 30, Island Clinical Services mistakenly omitted adjusting entries for (1) $1,500 of suppliesthat were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000 that expired. What isthe combined effect of these errors on (a) revenues, (b) expenses, and (c) net income for the year ending June 30?
180.On December 31, a business estimates depreciation on equipment used during the first year of operations to be$2,900. (a) Journalize the adjusting entry required on December 31. (b) If the adjusting entry in (a) were omitted,which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as ofDecember 31?
181.At the end of the fiscal year, the following adjusting entries were omitted:
(a)No adjusting entry was made to transfer the $1,750 of prepaid insurance from theasset account to the expense account.
(b)No adjusting entry was made to record accrued fees of $525 for services providedto customers.
Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error,considered individually, by inserting the dollar amount in the appropriate spaces. Insert "0" if the error does notaffect the item.
Error (a) Error (b)
Over-
stated Under-
stated Over-
stated Under-
stated
(1)Assets at December 31 would be
$
$
$
$
(2)Liabilities at Dec. 31 would be
$
$
$
$
(3)Net income for the year would be
$
$
$
$
(4)Owner’s equity at Dec. 31 would be
$
$
$
$
182.Jordon James started JJJ Consulting on January 1. The following are the account balances at the end of the firstmonth of business, before adjusting entries were recorded:
Accounts Payable$300
Accounts Receivable750
Cash6,300
Consulting Revenue4,925
Equipment7,000
Common Stock15,000
Dividends1,375
Prepaid Rent4,000
Supplies800
Adjustment data:
Supplies on hand at the end of the month, $200Unbilled consulting revenue, $700
Rent expense for the month, $1,000Depreciation on equipment, $90
(a)Prepare the required adjusting entries, adding accounts as needed.
(b)Prepare an adjusted trial balance for JJJ Consulting as of January 31.