Question

At the end of January, the first month of the business year, the accountant omitted the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account. Because of the error, which items will be incorrectly stated on?
(a) The income statement for January
(b) The balance sheet as at January 31? Also indicate whether the items in error will be overstated or understated.


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  • CreatedSeptember 15, 2015
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