During the current accounting period Page Company makes the following errors. The company uses a perpetual inventory system.

Required
Indicate the effect of the errors on the net income, total assets, total liabilities, and total stockholders€™ equity at the end of the accounting period by using the following code: O = overstated, U = understated, N = no effect. Disregard incometaxes.

Transcribed Image Text:

Total Net To Total Stockholders Error Income Assets Liabilities Equity Example: Failed to record a cash sale 1. The purchase of equipment for cash is recorded as LI LI LI a debit to Equipment and a credit to Accounts Payable. 2. Failed to record the purchase of inventory on credit. 3. Cash received from a customer in payment of its account is recorded as if the receipt were for a current period sale. 4. Pailed to record a credit sale. 5. At the end of the year the receipt of money from a 60-day 12% bank loan is recorded as a debit to Cash and a credit to Sales Revenue. Failed to record depreciation at the end of the current period 6.