ABC Company has the following liabilities at year-end: Notes Payable $50,000 Accounts Payable $25,000 Wages...
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Accounting
ABC Company has the following liabilities at year-end:
Notes Payable $50,000
Accounts Payable $25,000
Wages Payable $9,000
Interest Payable $1,000
Unearned Service Revenue $3,400
a. Which of these account(s) probably was/were created at the end of the fiscal year as a result of an accrual? Which account(s) probably was/were not adjusted at year-end? Explain your answer.
b. Which adjustments probably reduced net income, and which adjustments probably increased net income? Explain your answers.
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