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a Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Balance Sheet using
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Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Balance Sheet using the symbol + (plus) for overstated,- (minus) for understated, and 0 (zero) for no effect. 2021 2020 Income Statement Balance Sheet Income Statement Balance Sheet 1. Ending inventory in 2020 overstated. 2. . Failed to accrue 2020 interest revenue. A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to Maintenance Expense in 2020 Failed to count office supplies on hand at 12/31/20. Cash expenditures have been charged to Supplies Expense during the year 2020. 4. > > . 5. Failed to accrue 2020 wages. 6. Ending inventory in 2020 understated. 7. Overstated 2020 depreciation expense; 2021 expenseStep by Step Solution
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