1. Mrs. Puff's Boating School (The Company) is an operator of a marina, responsible for selling, storing and maintaining boats. The Company has prepared its annual financial statements for the year ended December 31, 2019 in compliance with Accounting Standards for Private Enterprises (ASPE). In preparing the financial statements, the accountant forgot to prepare the adjusting and/or correcting journal entries for the following transacting: a) On July 4, 2019, Mr. Krabs sold a boat to The Company (to use for sale) in exchange for $15,000 of common shares of The Company. The accountant forgot to record this transaction. b) On September 22, 2019, The Company received an income tax reassessment, indicating that additional tax owing of $365,000. The accountant forgot to record this transaction. c) The Company stored 3 boats for Squidward until the end of December 2019, but did not bill this customer $3,600 for the service until January 2020. The accountant recorded the transaction in January 2020 to correspond with the timing of billing. d) Spongebob paid The Company $5,400 on December 1, 2019, to store his speedboat until March 1, 2020. The Company credited the full amount to deferred storage revenue (i.e. unearned revenue) on December 1, 2019. e) The Company used boat-lifting equipment that cost $380,000; the estimated depreciation for fiscal year 2019 is $57,000. The accountant forgot to record this transaction. f) The Company is expecting to hire a new accountant in summer of 2020, with an annual salary of $95,000. The accountant did not record this pending transaction. g) The Company borrowed $50,000 from Canada Bank on June 15, 2019, fully repayable on June 15, 2023. The accountant debited cash and credited revenue. For each of the above independent transactions, indicate whether the current ratio (current assets/current liabilities), debt-to equity ratio (liabilities/equity), and earnings-per-share (EPS) are overstated (too high), understated (too low), or unaffected by the lack of adjustment(s) in the December 31, 2019 financial statements (i.e., before any adjusting or correcting entry is made). Assume all ratios before any adjustments or corrections are 1:1