Edgar Company had some accounting mistakes. Accrued salaries of $146,000 were not recorded at December 31, 2021 but were recorded on January 3, 2022. Office supplies on hand of $89,000 at December 31, 2022 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. 1.) What is the effect on the 2022 net income? 2.) What is the effect on the 2022 retained earnings?