Adjusting entries are prepared at the end of the financial period to record the accrued revenue and accrued expenses. The adjustments include adjustments for accrued revenue, deferred revenue, accrued expenses, and deferred expenses. To Calculate: The effect on profits if adjustment entry is not prepared for lease.

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Chapter 4, Problem 4.6.4E

To determine

Concept Introduction:Adjusting entries are prepared at the end of the financial period to record the accrued revenue and accrued expenses. The adjustments include adjustments for accrued revenue, deferred revenue, accrued expenses, and deferred expenses.

To Calculate: The effect on profits if adjustment entry is not prepared for lease.

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