When adjusting entries were made at the end of the
When adjusting entries were made at the end of the year, the accountant for Parker Company did not make the following adjustments.
a. $2,900 of wages had been earned by employees but were unpaid.
b. $3,750 of revenue had been earned but was uncollected and unrecorded.
c. $2,400 of revenue had been earned. The customer had prepaid for this service and the amount was originally recorded in the Unearned Sales Revenue account.
d. $1,200 of insurance coverage had expired. Insurance had been initially recorded in the Prepaid Insurance account.
Required:
Identify the effect on the financial statements of the adjusting entries that were omitted.
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