A company has a fiscal yearend of December : on October $ was paid for a oneyear fire insurance policy; on June the company loaned its chief financial officer $; principal and interest at on the note are due in one year; and equipment costing $ was purchased at the beginning of the year for cash. Depreciation on the equipment is $ per year.
If the adjusting entries were not recorded, would net income be higher or lower and by how much?
Note: Decreases to account classifications should be entered as a negative.
tableAdjusting Entry,Net incomeTotal
