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At March 31, the end of the first month of operations, the usualadjusting entry transferring prepaid insurance expired to anexpense account is omitted. Which items will be incorrectly stated,because of the error, on (a) the income statement for March and (b)the balance sheet as of March 31? Also indicate whether the itemsin error will be overstated or understated.

a. Income Statement

Insurance Expense

Select

Overstated orUnderstated
Net Income

Select

Overstated or Understated

b. Balance Sheet

Prepaid Insurance SelectOverstatedUnderstatedCorrectItem 3
Stockholders' Equity

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Keith Leannon
Keith LeannonLv2
28 Sep 2019

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