Determine theneteffect of these errors (i.e., combined effect of all three errors) on the following items. Indicate the dollar amount of the net error and the direction of the net error. (Example: $17 overstated, or $12 understated, or No Error.) Hint:

Prepare the journal entries 1. Net Income 2. Total Liabilities 3. Total Assets 4. Retained Earnings

Accrued interest revenue $85

Payment of salaries payable $25

Cash payment for advertising services $12