The following unadjusted amounts were taken from Ruben Gifts' accounting records at December 31, 2015: A Determine the effects on the accounting equation of any adjusting entries necessary for Ruben Gifts at December 31, 2015, for both of the following transactions:
1 During December of 2015, Ruben Gifts had received payments from tenants that were renting storage space in its warehouse. The payments received by Ruben Gifts were for the period December, 2015, and January, 2016.
2 At the end of the year, Ruben Gifts determined that $240 of office supplies remained on hand.
B What is the effect of omitting these adjustments on the current year's net income?

Question

The following unadjusted amounts were taken from Ruben Gifts' accounting records at December 31, 2015:  A Determine the effects on the accounting equation of any adjusting entries necessary for Ruben Gifts at December 31, 2015, for both of the following transactions:
1 During December of 2015, Ruben Gifts had received payments from tenants that were renting storage space in its warehouse. The payments received by Ruben Gifts were for the period December, 2015, and January, 2016.
2 At the end of the year, Ruben Gifts determined that $240 of office supplies remained on hand.
  B What is the effect of omitting these adjustments on the current year's net income?

Quizplus · Accepted Answer

The Answer of The following unadjusted amounts were taken from Ruben Gifts' accounting records at December 31, 2015:  A Determine the effects on the accounting equation of any adjusting entries necessary for Ruben Gifts at December 31, 2015, for both of the following transactions:
1 During December of 2015, Ruben Gifts had received payments from tenants that were renting storage space in its warehouse. The payments received by Ruben Gifts were for the period December, 2015, and January, 2016.
2 At the end of the year, Ruben Gifts determined that $240 of office supplies remained on hand.
  B What is the effect of omitting these adjustments on the current year's net income?

The Following Unadjusted Amounts Were Taken from Ruben Gifts' Accounting