5 Print Saved Below are three Independent and unrelated errors. a. On December 31, 2020, Wolfe-Bache Corporation failed to accrue salaries expense of $1,750. In January 2021, when it pald employees for the December 27-January 2 workweek, Wolfe-Bache made the following entry: Salaries expense Cash 1,750 1,750 b. On the last day of 2020, Midwest Importers received a $89,000 prepayment from a tenant for 2021 rent of a building. Midwest recorded the receipt as rent revenue. The error was discovered midway through 2021. c. At the end of 2020, Dinkins-Lowery Corporation failed to accrue interest of $7,900 on a note receivable. At the beginning of 2021, when the company received the cash, it was recorded as interest revenue. Required: For each error: 1. What would be the effect of each error on the income statement and the balance sheet in the 2020 financial statements? 2. Prepare any journal entries each company should record in 2021 to correct the errors. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What would be the effect of each error on the income statement and the balance sheet in the 2020 financial statements? Error a Income Statement Balance Sheet Error b Income Statement Balance Sheet Error c Income Statement Balance Sheet: Expenses understated Assets understated Net income understated Retained earnings understated Expenses overstated Assets overstated Net income overstated Retained earnings overstated Revenue understated Liabilities understated *Untitled Notepad File Edit Format View Help these answers are wrong. I wanted to show what options you have to select. liabilites and revenue overstated are both options, but did not have room to show them > Required 2 > Ln 100% Windows (CRLF) UTF-8 X