Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 27

Effect of omitting adjusting entry
When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were overlooked. The accrued salaries were included in the first salary payment in November. Indicate which items will be erroneously stated, because of failure to correct the initial error, on (A) the income statement for the month of November and (B) the balance sheet as of November 30.