Problem page watson company's employees earn $290 per day and are paid on friday for a five-day work week. this year, december 31 is a thursday. if the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) income statement accounts (overstated, understated, or no effect)? (b) net income (overstated, understated, or no effect)? (c) balance sheet accounts (overstated, understated, or no effect)?

inocme statment:

wages expense: understate

net income overstate

blanace sheet

wages payable: understate

Retained Earnings: overstate

Explanation:

If the adjusting entry is not made, then the expenses will be lower than it should.

Thereofre the net income will be overstate as there are more expenses but weren't recorded.

the balance sheet will not represent accurate the liabilities as there is wages payable which are not recorded.

also, in the blaance sheet the Retained Earnings account will be overstate as it include the net income which is overstate.

answer; ///(c) the way a government controls the supply,availability,and value of money;

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.