A B

Prepaid rent, Apr. 1 40,000 50,000

Rent Payments during the Month 140,000 80,000
Total 180,000 130,000
Prepaid Rent, Aprl. 30 30,000 40,000
Rent Expense for the Month 150,000 90,000
 C D
90,000 60,000
110,000 90,000
200,000 150,000
80,000 70,000
120,000 80,000
 Vivian Asacta Wedding Planner
Income Statement
Dec-21

Service Revenues 1,821,000

Supplies Expense 78,000
Salaries Expense 840,000 918,000
903,000
a. understated
b. overstated
c. not affected
d. overstated
e. not affected
f. understated
 Effect of Omission
Classification a b c

Revenues o + o
Expenses - o -
Profit o o o
Total Assets + + +
Total Liabilities o o o
Owner's Equity + + -
d e f g

o o o -
- - + o
o o o o
+ o o -
o o o o
+ + - -
a. Salaries Expense 50,400
Salaries Payable 50,400

b. Depreciation Expense 30,000

Accumulated Depreciation 30,000

c. Unearned Service Revenue 1,080,000

Service Revenue 1,080,000

d. Insurance Expense 4,000

Prepaid Insurance 4,000

e. Unearned Service Revenue 50,000

Service Revenue 50,000

Effect on
Amount Profit Total Assets Total Liabilities

a. 50,400 - +
b. 30,000 - -
c. 1,080,000 + -
d. 4,000 - -
e. 50,000 + -
Owner's Equity

-
-
+
-
+