X Company prepares monthly financial statements. It rents space in a large offic

Question

X Company prepares monthly financial statements. It rents space in a large office faled to make the proper adjusting entry on May 31. What was the effect on the May financial statements? O Total equities on May 31 were overstated, total expenses for May were overstated Total equities on May 31 were understat Total equities on May 31 were ed; total expenses for May were overstated. for May were understated. Total equitiles on May 31 were correct, total expenses for May were Total equities on May 31 were understated; total expenses for May were understated. Total equities on May 31 were correct, total expenses for May were overstated. Book Pro 8 2 0

Explanation / Answer

Answer option B

Total Equities were understated and total expenses were overstated

the expense of jun also recorded in may so expense will increase and equities will reduce

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