1. On December 31, 2020, Omaxe group failed to accrue office supplies expense of $30000. In March 2022, when it received the bill from its supplier, WolfeBache made the following entry: 2. On the last day of 2021, readymade importers a $10000 prepayment from a tenant for 2022 rent of a building. Readymade recorded the receipt as rent revenue. 3. At the end of 2021, SAT Company failed to accrue interest of $10000 on a note receivable. At the beginning of 2022, when the company received the cash, it was recorded as interest revenue. Below are three independent and unrelated errors Office supplies expense 30000 Cash 30000 Required:

1. What would be the effect of each error on the statement of profit or loss and the statement of financial position in the 2021 financial statements?

2. Prepare any journal entries each company should record in 2022 to correct the errors.