Accounting

Effects of errors on financial statements

Indicate the immediate effect of the following errors on each of the
accounting elements

Described in the column heading below, using the following code: O =
Overstated, U= Understated; NE = No Effect.

Error Total Revenue Total Expenses Net Income Total Assets Total
Liability Owner Equity

Received $500 cash for services rendered to a customer, but recorded the
transaction as $50 U NE U U NE U

a. Recorded twice a sale of services to a customer







B .Recorded the purchase of office equipment on account as a debit to
office Equipment and a credit to Account Receivable







c. Failed to record interest accrued at end of period of note payable







d. Recorded collection of account receivable by debit to cash and credit
to revenue