For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000 that expired. For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income?

Question

Business

Sarai Mcneil

2 August, 03:35

For the year ending December 31, Orion, Inc. mistakenly omitted adjusting entries for $1,500 of supplies that were used, (2) unearned revenue of $4,200 that was earned, and (3) insurance of $5,000 that expired. For the year ending December 31, what is the effect of these errors on revenues, expenses, and net income?

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Ashlynn Harrell · Answer 1

revenue 4200+

Expenses 1500-

5000-

Net income 2300-

Explanation:

Supllies 1500 Increase expenses reduce net income

unearned revenue 4200 Increase revenue increase net income

Insurance 5000 Increase expenses reduce net income