In Chapter 3, you learned about four types of adjustments: (1) Prepaid expenses; (2) Unearned revenues; (3)

Question:

In Chapter 3, you learned about four types of adjustments:
(1) Prepaid expenses;
(2) Unearned revenues;
(3) Accrued revenues; and
(4) Accrued expenses. For each type of adjustment, indicate the following:
(a) The reason the adjustment is required.
(b) The effect of the and income statement if the adjustment is not recorded.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...