i need a breakdown of why each is overstated or understated. i just need it for 7-11.

Handout 4 Alpha, Inc., made errors and/or omissions during the current year as described below. Indicate the effect of these errors and omissions on total assets, total liabilities, and net income for the year using the following code: O = overstated, U = understated, N = no effect. Alpha uses a periodic inventory system and a year ending December 31. Ignore income taxes. Error or Omission 1 2 3 4 5 6 7 8 9 10 11 Example: Failed to record a cash sale. The purchase of equipment for cash is recorded as a debit to Equipment and a credit to Accounts Payable. Failed to record the purchase of merchandise (inventory) on account. Cash received from a customer in payment of its existing account is recorded as if the receipt were for a current period sale. Recorded a credit sale as a debit to Cash and credit to Sales. The receipt of money from a bank loan is recorded as a debit to Cash and a credit to Sales. Failed to record depreciation at the end of the current period. Failed to record AJE: Salaries are paid every Friday for a 5-day work week. The normal weekly payroll is $40,000. The year end falls on a Tuesday this year. Failed to record AJE: Examining the Rent Expense account, the controller finds that it includes a $4,800 advance payment for 3 months' rent. The payment was made on November 1. Failed to record AJE: There is $500 of office supplies left in the storeroom. At the beginning of the year, there were no office supplies. During the year, $3,500 of office supplies was purchased. Failed to record AJE: The company received an order in May with a $13,000 advance payment, which was credited to Unearned Revenue. In November, the last of the order was shipped to the customer. Failed to record AJE: The company has a $20,000, 9month, 12% note payable outstanding at the end of the year. The note was issued on October 1. The interest is to be paid when the note is paid. Total Assets U Total Liabilities N Net Income U A L NI Recorded equipment to A/P instead of cash. O O N 2. Credit purchase of inventory not recorded. N U O 3. Recorded receipt of cash as sale instead of A/R payment from customer. O N O N N N N U O O N O Handout #4 1. 4. Credit sale recorded as cash sale. 5. Recorded loan as sale instead of liability. 6. Depreciation not recorded. A L NI 7. Salaries Expense $16,000 N U O 8. Prepaid Rent $1,600 U N U 9. Supplies Expense $3,000 O N O $13,000 N O U $600 N U O 10. Sales Revenue 11. Interest Expense 1 The purchase of equipment for cash is recorded as a debit to Equipment and a credit to Accounts Payable. A L Equipment A/P XX NI XX Equipment XX Cash XX Overstated 2 Failed to record the purchase of merchandise on account. A L NI A/P XX Understated Purchases XX Understates CGS Overstates Net Income 3 Cash received from a customer as payment of its account is recorded as if the receipt were for a current period sale. A L Cash XX NI Sales XX Cash XX A/R XX Overstated 4 Recorded a credit sale as a debit to Cash and credit to Sales A Cash XX A/R XX L NI Sales XX Sales XX 5 The receipt of money from a bank loan is recorded as a debit to Cash and a credit to Sales Revenue. A L NI Cash Sales XX Cash XX XX Loan Payable XX Understated Overstated 6 Failed to record the depreciation at the end of the current period. A L Accum Deprec XX Assets Overstated NI Deprec Expense XX NI Overstated 2 Failed to record the purchase of merchandise on account. A L Inventory A/P XX NI XX Periodic Inventory XX Understates CGS and Overstates Net Income Perpetual Inventory Over & Short XX Overstates Net Income