Response to the following problem:
Errors in Financial Statements At the end of the current year, the controller of the Jodi Corporation discovers the following items of information:
1. Salaries are paid every Friday for a five-day work week. The normal weekly payroll is $40,000. The year-end falls on a Tuesday this year.
2. The company has a $20,000, nine-month, 12% (annual rate) note payable outstanding at the end of the year. The note was issued on October 1; the interest is to be paid when the note is paid.
3. Examining the Rent Expense account, the controller finds that it includes a $4,800 advance payment for three months' rent. The payment was made on November 1.
4. There are $500 of office supplies left in the storeroom. At the beginning of the year there were no office supplies. During a year the company purchased $3,500 of office supplies, which were debited to the Office Supplies account.
5. The company received a large order in May with a $13,000 advance payment. The advance payment was credited to Unearned Revenue. In November, the last of the order was received by the customer.
Required
For each of the preceding items, indicate the effect on net income, assets, liabilities, and stockholders' equity in the financial statements of the company for the year if the controller fails to make an adjusting entry for the item (ignore income taxes). (Contributed by Paula L. Koch)