obj. 3 v" 1. {a} Revenue understated. $13,000 E3-18 Effects of errors on nancial statements The accountant for Healthy Medical Co., a medical services consulting rm, mistakenly omitted adjusting entries for (a) unearned revenue earned during the year (5175.000) and (b) accrued wages ($12,300). Indicate the effect of each error, considered individually, on the income statement for the current year ended August 51. Also indicate the effect of each error on the August 5] balance sheet. Set up a table similar to the following, and record your answers by inserting the dollar amount in the appropriate spaces. Insert a zero if the error does not affect the item. Error ta] Error {bl Over Under Over Under stated stated stated stated 1. Revenue fortheyearwouldbe 5 5 5 5 _ 2. Expenses for the year Would be 5 _ S _ 5 _ 5 3. Netineornefor theyearwould be 5 5 5 $ 4. Asset: at August 31 would be 5 _ 5 _ 5 $ 5. Liabilities at August31 would he 5 5 5 5 6. Stockholders'equity at August 31 would be 5 _ 5 _ 5 $