During the analysis of accounts of Ventura Company, it was identified that the company made several errors in recording some transactions. Moreover, the company missed the recording of some transactions. These errors and omissions significantly affected the final accounts of the company. It was observed that the company erroneously recorded: a) declared but unpaid dividend of $12,000 by debiting dividends and crediting cash; b) payment of a $14,000 account payable as a debit to account payable and credit to travel expense; c) sale of a 300 shares of capital stock @ $50 per share as debit to cash and credit to retained earnings; d) receipt of a customer deposit of $30,400 as a debit to cash and credit to fees earned. It was further noted that the company failed to: e) record depreciation expense of $1,200 on office equipment; f) record accrued wages of $10,000 at the end of accounting period; g) record $150 as expired portion of an insurance policy: h) disclose a pending lawsuit in the notes accompanying the financial statements: You are required to: 1) Indicate the effect of each error on major elements of Income Statement and Balance Sheet. Use the code letters 0 for overstated, U for understated, and NE for no effect. Organize your answer in tabular form using the column headings shown below: Error No. Revenue Expenses Net Income Assets Liabilities Owner's Equity 2) Identify and report the overall effect of the errors (in S amounts) on assets, liabilities, owner's equity, revenues, expenses, and net income. 3) Prepare necessary entries (with explanation) actually required to record each transaction. If no entry is required, explain why? 4) In your opinion, which error has most significant effect on accounts of the company? Explain your answer. During the analysis of accounts of Ventura Company, it was identified that the company made several errors in recording some transactions. Moreover, the company missed the recording of some transactions. These errors and omissions significantly affected the final accounts of the company. It was observed that the company erroneously recorded: a) declared but unpaid dividend of $12,000 by debiting dividends and crediting cash; b) payment of a $14,000 account payable as a debit to account payable and credit to travel expense; c) sale of a 300 shares of capital stock @ $50 per share as debit to cash and credit to retained earnings; d) receipt of a customer deposit of $30,400 as a debit to cash and credit to fees earned. It was further noted that the company failed to: e) record depreciation expense of $1,200 on office equipment; f) record accrued wages of $10,000 at the end of accounting period; g) record $150 as expired portion of an insurance policy: h) disclose a pending lawsuit in the notes accompanying the financial statements: You are required to: 1) Indicate the effect of each error on major elements of Income Statement and Balance Sheet. Use the code letters 0 for overstated, U for understated, and NE for no effect. Organize your answer in tabular form using the column headings shown below: Error No. Revenue Expenses Net Income Assets Liabilities Owner's Equity 2) Identify and report the overall effect of the errors (in S amounts) on assets, liabilities, owner's equity, revenues, expenses, and net income. 3) Prepare necessary entries (with explanation) actually required to record each transaction. If no entry is required, explain why? 4) In your opinion, which error has most significant effect on accounts of the company? Explain your