On January 1, 2012, Keller Company purchased and installed a telephone system at a cost of $20,000. The equipment was expected to last five years with a salvage value of $3,000. On January 1, 2013, more telephone equipment was purchased to tie-in with the current system for $10,000. The new equipment is expected to have a useful life of four years. Through an error, the new equipment was debited to Utilities Expense. Keller Company uses the straight-line method of depreciation. Prepare a schedule showing the effects of the error on Utilities Expense, Depreciation Expense, and Net Income for each year and in total beginning in 2013 through the useful life of the new equipment.

Year Utilities Expense Depreciation Expense Net Income

Overstated Overstated Overstated

(Understated) (Understated) (Understated)

2013 $____________________ $_______________________ $_______________

2014 _____________________ ________________________ ________________

2015 _____________________ ________________________ ________________

2016 _____________________ ________________________ ________________

__________________________________________________________________________________________________

TOTAL _____________________ ________________________ ________________