Question 2 if Baker did not make the August 31 adjusting entry related to the advance payment in question 1: The errors on the Income Statement for August would be: items uderstated: none items overstated: Service Revenue, Net Income The errors on the August 31 Balance Sheet would be: items understated: Unearned Revenue, Total Liabilities items overstated: Retained Earnings, Total Equity The errors on the Income Statement for August would be: items understated: Service Revenue, Net Income items overstated: none The errors on the August 31 Balance Sheet would be: items understated: Retained Earnings, Total Equity items overstated: Unearned Revenue, Total Liabilities The errors on the Income Statement for August would be: item understated: Service Revenue item overstated: Net Income The errors on the August 31 Balance Sheet would be: items understated: Retained Earnings, Total Liabilities items overstated: Total Equity, Unearned Revenue esc