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

Question 100

Essay

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
-  Additional Information 12/31/09 Assets 12/31/09 Liabilities 12/31/09 Owners’ Equity 2009 Net Income  $20,000 in depreciation on some  equipment was still unrecorded. \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 } \text { \$20,000 in depreciation on some } \\\text { equipment was still unrecorded. }\end{array} & & & & \\\hline\end{array}

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