__________________1.On 2004 net income of the omission of both accrued expense and

unearned income at the endof 2002, 2003 and 2004 when considered together.

__________________2.On Retained Earnings after closing atDec. 31, 2004 of the

omissionunearned income at the end of 2002,2003 and 2004.

__________________3.On working capital at December 31, 2004 of the omission of

accrued income at the end of 2002, 2003 and 2004 when considered together.

__________________4.On working capital at Dec. 31, 2004 of the omission ofunearned

income at the end of2002, 2003 and 2004.

__________________5.On Retained Earnings after closing atDec. 31, 2004 of the omission

of accruedexpenses at the end of 2002, 2003 and 2004.

__________________6.On working capital at Dec. 31, 2004 of the omission of prepaid

expenses at the end of 2003and 2004.

__________________7.On Retained Earnings after closing at Dec. 31, 2004 on the omission

of prepaid expenses at the end of 2002 and 2003.

__________________8.On 2003 net income of the omission of accruedexpenses at the

end of 2002.

__________________9.On2004 net income of the omission of accruedincome at the

end of 2002, 2003 and 2004 when considered together.

__________________10.On the 2003 net income of the omission of both accrued income

and prepaid expense at the end of 2002 and 2003.

__________________11.On the 2004 net income of the omission of prepaidexpenses at

the end of 2003 and 2004.

__________________12.On 2004 net incomeof the omissionunearned incomeat the

end of 2002 and 2003.

__________________13.On Retained Earnings before closing at Dec. 31, 2002 of the

omission of accrued income at the end of 2002.

__________________14.On the 2004 net income of the omission of accrued expenses at

the end of 2002, 2003 and 2004 when considered together.

__________________15.On Retained Earnings after closing at Dec.31, 2004 of the

omission of both accruedexpenses and unearned income at the end 2002, 2003 and 2004 whenconsidered together.

PROBLEM 3 You have been engaged to audit the accounts of EFU CORP. for the first time in 2004. During the audit you found the following: Year ending December 31 2002 2003 2004 Omissions from the books: a. Accrued expenses, Dec. 31 P18,000 P27,000 P9,000 b. Accrued income, Dec. 31 3,600 4,050 3,150 C. Prepaid expenses, Dec. 31 108,000 81,000 54,000 d. Unearned income. Dec. 31 31,500 22,500 13,500 REQUIREMENTS: a. For each number indicate the effect by writing O for overstated, U for understated or X for no effect. b. Indicate the amount of over or under statement. EFFECT AMOUNT