Determine the Effect of the Following Errors on the Financial

question 31

Essay

Determine the effect of the following errors on the financial statements.Code your answers as follows and do not leave any blank spaces.
O: If the error results in an overstatement of the financial statement component.
U: If the error results in an understatement of the financial statement component.
N: If the error does not affect the financial statement component.
Error 1: A company failed to adjust the prepaid insurance account for insurance that was used during the period.
Revenue _____
Expenses _____
Net income _____
Assets _____
Liabilities _____
Stockholders' equity _____
Error 2: A company failed to record depreciation expense at year-end.
Revenue _____
Expenses _____
Net income _____
Assets _____
Liabilities _____
Stockholders' equity _____
Error 3: A company did not adjust the unearned revenue account for revenue earned during
the year.
Revenue _____
Expenses _____
Net income _____
Assets _____
Liabilities _____
Stockholders' equity _____

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