Effect of recording errors on financial statements. Using the notation 0/S (overstated), U/S (understated), and NO (no effect), indicate the effects (direction and amount) on assets, liabilities, and shareholders" equity as of December 31, Year 3, of the following independent errors or omissions. Ignore income tax implications.

a. On December 1, Year 3, a firm debits Prepaid Rent for $1,800 for six months" rent on an automobile. It made no adjusting entry on December 31, Year 3.

b. A firm debits Administrative Expenses for $9,000 for a computer acquired on July 1, Year 3. The computer has an expected useful life of three years and zero estimated salvage value.

c. A company rents out excess office space for the six-month period beginning January 1, Year 3. It receives a rental check for this period of $1,500 on December 26, Year 2, and correctly credits Rental Fees Received in Advance. It makes no further journal entries relating to this rental during Year 3.

d. A firm earns interest on Notes Receivable of $300 as of December 3 1 , Year 3, but makes no entry to recognize this interest.

e. A firm receives a check for $250 from a customer on December 3 1 , Year 3, in settlement of an account receivable. It makes no journal entries to record this check.

f. A firm records as $740 an expenditure of $470 for travel during December, Year 3.