1)The Mace Company fails to record these Journal Entries Accrued Expense $30 Expiration of Prepaid Insurance $40 Paid Cash to purchase Supplies $8 Required: Determine the net effect of these errors on the following items. Indicate the dollar amount of the error and the direction of the error. (Example: $17 overstated, or $12 understated, or NO ERROR) a) Net Income $________________ b) Total Liabilities $________________ c) Total Assets $________________ d) Retained Earnings $________________

2)The Draper Company Records these journal entries: Depreciation $17 Accrued Revenue $12 Cash paid to purchase Machine $21 Required: Indicate the net effect of these journal entries on the following items. Indicate the dollar amount of the effect and the direction of the effect. (Example: $13 Increase, or $8 Decrease, or NO EFFECT) a) Net Income $______________ b) Total Assets $______________ c) Total Liabilities $________ ______ d) Retained Earnings $_______________ e) Total Equity $_______________ f) Working Capital $_______________