Cases For Critical Thinking in Accounting?

Gretel Bakken forgot to journalize and post the adjusting entry for prepaid insurance at the end of the June fiscal period. What effect will this omission have on the records of Ms. Bakken's business as of June 30? Explain your answer. Question #1 Vicente Burgos states that his business is so small that he... show more Gretel Bakken forgot to journalize and post the adjusting entry for prepaid insurance at the end of the June fiscal period. What effect will this omission have on the records of Ms. Bakken's business as of June 30? Explain your answer. Question #1

Vicente Burgos states that his business is so small that he just records supplies and insurance as expenses when he pays for them. Thus, at the end of a fiscal period, Mr. Burgos does not record adjusting and closing entries for his business. Do you agree with his accounting procedures? Explain your answer.
Update: the second part is question #2
1 answer