The income statement of annette co. for the month of july shows net income of $3,200 based on service revenue $7,700, salaries and wages expense $2,600, supplies expense $1,400, and utilities expense $500. in reviewing the statement, you discover the following: 1. insurance expired during july of $500 was omitted.2. supplies expense includes $300 of supplies that are still on hand at july 31.3. depreciation on equipment of $250 was omitted.4. accrued but unpaid salaries and wages at july 31 of $400 were not included.5. services provided but unrecorded totaled $700.required: a. what effect do the corrections have on the amount reported as total assets on the balance sheet? b. what effect do the corrections have on the amount reported as total liabilities on the balance sheet?

Which of the following statements is correct? a) due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporationsb) most businesses (by number and total dollar sales) are organized as proprietorships or corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships.c) due to legal considerations related to ownership transfers and limited liability, which affect the ability to attract capital, most business (measured by dollar sales) is conducted by corporations in spite of large corporations' less favorable tax treatmentd) large corporations are taxed more favorably than proprietorshipse) corporate stockholders are exposed to unlimited liability