During the current accounting period, Page Company makes the following errors.

The company uses a perpetual inventory system.

Required;

Indicate the effect of each error on the net income, total assets, total liabilities, and total shareholders? equity at the end of the accounting period by using the following code: O = overstated, U = understated, N = no effect. Disregard income taxes.

Error Example: Failed to record a cash sale: 1. The purchase of equipment for cash is recorded as 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. Failed 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. 6. Failed to record depreciation at the end of the current period. Net Income Total Assets U Total Liabilities N Total Shareholders' Equity U