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.
Identify the effect on the financial statements of the adjusting entries that were omitted.