For the year ending February 28, 2009, Samaritan Medical Co. mistakenly omitted adjusting entries for (1) depreciation of $4,100, (2) fees earned that were not billed of $15,300, and (3) accrued wages of $3,750. Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended February 28, 2009.
For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.
a. The adjustment for accrued wages of $4,150 was journalized as a debit to Wages Expense for $4,150 and a credit to Accounts Payable for $4,150.
b. The entry for $1,290 of supplies used during the period was journalized as a debit to Supplies Expense of $1,290 and a credit to Supplies of $1,920.