The grid the explanation marks come from; then the statements

If skipped

Every adjustment touches one income-statement account and one balance-sheet account, so skipping one misstates both statements, and the paper asks for both. Build the effect from the entry that was not made.

Worked example — Northlake's five, skipped one at a time

Read the wage row: the missing entry was Dr Salaries Expense / Cr Salaries Payable. No expense → net income over by 4,700; no payable → liabilities under by 4,700; the overstated net income flows into retained earnings, so equity is over by 4,700; assets untouched. Every row follows the same logic: the equity column always matches the net income column, because the only route from an adjustment to equity is through net income. Skip two — the wages and the insurance — and the effects add: net income over 5,200, liabilities under 4,700, assets over 500, equity over 5,200.

The two rows students reverse: skipping a revenue accrual (the grooming) understates net income, and skipping the insurance adjustment overstates assets — the prepaid is carried at 6,000 when 500 of it is gone.

From the adjusted trial balance to the statements

Pinecrest's November trial balance (L4.5) is adjusted at 30 November for three items: supplies on hand 250 (700 bought → 450 used); amortization on the equipment, 400; wages earned and unpaid, 600. The adjusted trial balance still agrees, and the statements come off it in a fixed order — income statement, then statement of retained earnings, then balance sheet — because each feeds the next.

Income statement, month ended 30 November
  Service revenue                       7,500
  Rent expense                2,400
  Salaries expense            3,700
  Supplies expense              450
  Amortization expense          400     6,950
  Net income                              550

Statement of retained earnings
  Retained earnings, 1 November         6,500
  Add: net income                         550
  Retained earnings, 30 November        7,050

Balance sheet, at 30 November
  Cash 15,900 + A/R 1,900 + supplies 250
  + equipment 25,800 − accum. amort. 400   = total assets      43,450
  A/P 5,300 + unearned 500 + salaries payable 600 = liabilities  6,400
  Common shares 30,000 + retained earnings 7,050   = equity     37,050
  Total liabilities and equity                                  43,450

The 6,500 on the trial balance is opening retained earnings — November's income has not been closed into it. Closing retained earnings, 7,050, is computed on the statement of retained earnings and carried to the balance sheet; it is never read off a trial balance, adjusted or not. A student who puts 6,500 in equity finds the balance sheet out by exactly the net income.

Inference — reading a balance backwards

A case sometimes gives the balances and asks for the fact behind them.

The groomer's accumulated amortization is 32,500. The annual charge is 15,000, and the first, partial year (bought 1 November) carried 2,500. How many full years has Northlake owned it since that first year end? $(32,500-2,500)÷15,000=2$ full years — three year ends in all.

Insurance expense for the year is 5,500 and prepaid insurance at year end is 500; the only policy was bought this year. How much was paid? The expense is what was used; the prepaid is what is left; together they are the payment: $5,500+500=6,000$.

The pattern in both: the balance-sheet account and the income-statement account are the two halves of one amount, and whichever is given, the other — or their sum, or their ratio — is the answer.