Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Balance Sheet using the symbol + (plus) for overstated, - (minus) for understated, and 0 (zero) for no effect. 1. Ending inventory in 2014 overstated."2. Failed to accrue 2014 interestrevenue."3. A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to Maintenance Expense in 2014. 4. Failed to count office supplies on hand at 12/31/14. Cash expenditures have been charged to Supplies Expense during the year 2014.5. Failed to accrue 2014 wages.6. Ending inventory in 2014 understated."7. Overstated 2014 depreciationexpense; 2015 expense correct."

Question

Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Balance Sheet using the symbol + (plus) for overstated, - (minus) for understated, and 0 (zero) for no effect.  1. Ending inventory in 2014 overstated."2. Failed to accrue 2014 interestrevenue."3. A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to Maintenance Expense in 2014.  4. Failed to count office supplies on hand at 12/31/14. Cash expenditures have been charged to Supplies Expense during the year 2014.5. Failed to accrue 2014 wages.6. Ending inventory in 2014 understated."7. Overstated 2014 depreciationexpense; 2015 expense correct."

Quizplus · Accepted Answer

The Answer of Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Balance Sheet using the symbol + (plus) for overstated, - (minus) for understated, and 0 (zero) for no effect.  1. Ending inventory in 2014 overstated."2. Failed to accrue 2014 interestrevenue."3. A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to Maintenance Expense in 2014.  4. Failed to count office supplies on hand at 12/31/14. Cash expenditures have been charged to Supplies Expense during the year 2014.5. Failed to accrue 2014 wages.6. Ending inventory in 2014 understated."7. Overstated 2014 depreciationexpense; 2015 expense correct."

Show How the Following Independent Errors Will Affect Net Income