During the current accounting period, the bookkeeper for the Foley Business made the following errors in the year-end adjustments:

Required:
Assuming that the errors are not discovered, indicate the effect of each error on revenues, expenses, net income, assets, liabilities and owner's equity at the end of the accounting period. Use the following code: \(\mathrm{O}=\) Overstated, \(\mathrm{U}=\) Understated and \(\mathrm{N}=\) No effect. Include dollar amounts. Be prepared to explain your answers.

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Error Example: Failed to record $240 of salaries owed at the end of the period 1 Failed to adjust prepaid insurance for $480 of expired insurance 2 Failed to record $600 of interest expense that had accrued during the period 3 Inadvertently recorded $360 of annual depreciation twice for the same equipment 4 Failed to record $120 of interest revenue that had accrued during the period 5 Failed to reduce unearned revenues for $720 of revenues that were earned during the period Revenues Expenses Net Income N U Effect of Error on: Assets $240 0 $240 N Liabilities U $240 Owner's Equity 0 $240