Suppose that Laramie Company's adjusted trial balance ignored the following information. For each item of information, indicate what effects, if any, these omissions would have on the stated components of Laramie Company's 2009 Income Statement and 12/31/09 Balance Sheet. Assume no income taxes.
Use the following code for your answers and be sure to include the dollar amounts of the effects:
0 = No Effect
+ = Overstated
= Understated
-$$\begin{array} { | c | c | c | c | c | }
\hline \text { Additional Information } & \begin{array} { c }
12 / 31 / 09 \
\text { Assets }
\end{array} & \begin{array} { c }
12 / 31 / 09 \
\text { Liabilities }
\end{array} & \begin{array} { c }
12 / 31 / 09 \
\text { Owners' Equity }
\end{array} & \begin{array} { c }
2009 \
\text { Net Income }
\end{array} \
\hline \begin{array} { l }
\$ 2,000 \text { interest on a loan was not } \
\text { yet paid or recorded }
\end{array} & & & & \
\hline
\end{array}$$

Question

Suppose that Laramie Company's adjusted trial balance ignored the following information. For each item of information, indicate what effects, if any, these omissions would have on the stated components of Laramie Company's 2009 Income Statement and 12/31/09 Balance Sheet. Assume no income taxes.
Use the following code for your answers and be sure to include the dollar amounts of the effects:
0 = No Effect
+ = Overstated
    = Understated
-$$\begin{array} { | c | c | c | c | c | } 
\hline \text { Additional Information } & \begin{array} { c } 
12 / 31 / 09 \
\text { Assets }
\end{array} & \begin{array} { c } 
12 / 31 / 09 \
\text { Liabilities }
\end{array} & \begin{array} { c } 
12 / 31 / 09 \
\text { Owners' Equity }
\end{array} & \begin{array} { c } 
2009 \
\text { Net Income }
\end{array} \
\hline \begin{array} { l } 
\$ 2,000 \text { interest on a loan was not } \
\text { yet paid or recorded }
\end{array} & & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Suppose that Laramie Company's adjusted trial balance ignored the following information. For each item of information, indicate what effects, if any, these omissions would have on the stated components of Laramie Company's 2009 Income Statement and 12/31/09 Balance Sheet. Assume no income taxes.
Use the following code for your answers and be sure to include the dollar amounts of the effects:
0 = No Effect
+ = Overstated
    = Understated
-$$\begin{array} { | c | c | c | c | c | } 
\hline \text { Additional Information } & \begin{array} { c } 
12 / 31 / 09 \
\text { Assets }
\end{array} & \begin{array} { c } 
12 / 31 / 09 \
\text { Liabilities }
\end{array} & \begin{array} { c } 
12 / 31 / 09 \
\text { Owners' Equity }
\end{array} & \begin{array} { c } 
2009 \
\text { Net Income }
\end{array} \
\hline \begin{array} { l } 
\$ 2,000 \text { interest on a loan was not } \
\text { yet paid or recorded }
\end{array} & & & & \
\hline
\end{array}$$

Suppose That Laramie Company's Adjusted Trial Balance Ignored the Following