Question: In recording adjusting entries Reagan Financial Advisors failed to record

In recording adjusting entries, Reagan Financial Advisors failed to record the adjusting entries for the following situations.
a. Office supplies on hand, $ 100.
b. Accrued revenues, $ 5,000.
c. Accrued interest expense, $ 250.
d. Depreciation, $ 800.
e. Unearned revenue that has been earned, $ 550.
Determine the effects on the income statement and balance sheet by identifying whether assets, liabilities, equity, revenue, and expenses are either overstated or understated. Use the following table. Adjustment a has been provided as anexample.

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  • CreatedJanuary 16, 2015
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