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Effects of Errors on Financial Statements

The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for $($a$)$ unearned revenue earned during the year $($b$)$ accrued wages $($$$12,770).$

Indicate the effect of each error, considered individually, on the income statement for the current year ended July $31.$ Also indicate the effect of each error on the Jul sheet.

Enter all amounts as positive numbers. Enter $"0"$ in those spaces where there is no overstatement or no understatement.

Error $($a$)$ The adjusting entry for unearned revenue earned during the year $($$$34,900)$ was omitted.

Revenue for the year would be

Expenses for the year would be

Net income for the year would be

Assets at July $31$ would be

Liabilities at July $31$ would be

Owner's equity at July $31$ would be

Error $($b$)$ The adjusting entry for accrued wages $($$$12,770)$ was omitted.

$\backslash$table$[[1.$ Revenue for the year would be$,$Overstated Understated$],[2.$ Expenses for the year would be$,]]$