A)

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)

Net Income $______________

Total Assets $______________

Total Liabilities $________ ______

Retained Earnings $_______________

Total Equity $_______________

Working Capital $_______________

B)

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)

Net Income $________________

Total Liabilities $________________

Total Assets $________________

Retained Earnings $________________