1. Use this information to answer the following questions: You are reviewing XYZ's adjusted trial balance for the year ended 12/31/2021. You notice several omissions, incorrect items and additional information during your review, some of which are noted below. For each one, you are to determine what effect, if any, these items would have on the stated components of XY2's 2021 Income Statement and 12/31/2021 Balance Sheet if they are not corrected or updated. Assume no income taxes. An answer (N, O or U) must be provided in each individual square. Do not include dollar amounts.

Instructions: Use the following code for your answers and Copy the table below to answer in the given table format:

N= No Effect

0 = Overstated

U= Understated

Additional Information 12/31/21 Assets 12/31/21 Liabilities 12/31/21 Retained Earnings 12/31/21 Revenue 12/31/21 Expenses Sales for the first four days of January 2022 are recorded as of December 31, 2021 $12,000 1 year insurance policy with an effective date of 8/1/21 was purchased and recorded as insurance expense. No further entries have been recorded. During 2021, the company received a $6500 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $6500 was credited to service revenue. No further entries have been recorded. The journal entry for depreciation on equipment for 2021 was recorded for $56,000. The amount should have been $66,000