What is the adjustment at the end of the accounting period

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Question - a) At the end of August, which is the first month of the business year for Dillard Inc., the usual adjustment transferring rent earned of $46,600 to a revenue account from the unearned rent account was entered twice. Indicate which items will be incorrectly stated because of the duplication on a) the Income Statement for the month of August and b) the Balance Sheet as of August 31st. Also indicate whether the items in error will be overstated or understated.

b) JC Co. pays salaries of $8,000 on Friday for a five-day week. What is the adjustment at the end of the accounting period, assuming that the period ends a) on Tuesday, b) on Thursday? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease.

Reference no: EM133108035

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