The following unadjusted amounts were taken from the accounting records of an insurance company at December 31, 2019: 
A)Prepare any necessary adjusting entries at December 31, 2019, for both of the following transactions:
1.The insurance premiums collected cover the period December 1, 2019, thru May 31, 2020.
2.At the end of the year, an inventory revealed that $250 of the office supplies remained on hand.
B)What is the effect of omitting these adjustments on the current year's net income?
Correct Answer:
Verified
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