x.Hmelp me review the answers of these questions 1-A company made no adjusting e

Question

x.Hmelp me review the answers of these questions

1-A company made no adjusting entry for accrued and unpaid employee wagesof $22,000 on December 31. This oversight would: A- Overstate assets by $22,000. B- Overstate net income by $22,000. C- Understate net income by $22,000. D - Understate assets by $22,000. Have no effect on net income. 2-A company had $9,090,000 in net income for the year. Its net sales were$14,800,000 for the same period. Calculate its profit margin. (Roundyour answers to one decimal place.) A- 14.8% A- Overstate assets by $22,000. B- Overstate net income by $22,000. C- Understate net income by $22,000. D - Understate assets by $22,000. Have no effect on net income.

Explanation / Answer

1. D - Understate assets by $22,000 2. F- 61.4% 3. D- A debit to a prepaid expense for $8,500. 4 B- A credit to Rent Earned for $1,800 5.C- A credit to Earned Fees for $3,200 6.B -a credit Earned Fees for $1,467 7.D- Debit Insurance Expense, $2,200; credit PrepaidInsurance, $2,200. 8. B- $731 9. C-$920 10.d-Revenue recognition principle. 11.A-Affect both income statement and balance sheetaccount 12. D-Time period principle 13.D- All of these 14.B-The matching principle 15. E-Adjustments to prepaid expenses, depreciation, andunearned revenues involve previously recorded assets andliabilities. 16. B-Unearned revenues. 17. A -Assets, net income, and equity overstated. 18. C- An overstatement of assets 19. C 20. A

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