On July $1$ of Year $8,$ a full year's insurance premium of $$8,400,$ covering the period July $1$ of Year $8$ to June $30$ of Year $9,$ was paid and debited to insurance expense. Assume the following:

The company has a calendar fiscal year.

January $1$ of Year $8,$ retained earnings balance is $$70,000.$

Year $8$ reported net income $($assuming the error is not discovered$)$ is $$79,800.$

Year $9$ net income $($assuming the error is not discovered$)$ is $$105,000.$

Year $10$ net income is $$140,000.$ Ignore taxes.

Required

a$.$ List the effects of the error on affected accounts and on net income in Year $8$ and Year $9.$ Assume no adjusting entry is made on December $31$ of Year $8.$

Note: Indicate an understatement by using a negative sign $(-)$ with the amount. Indicate no change by entering a zero $(0).$

b$.$ Prepare the entry to record the error if discovered in Year $8.$

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

c$.$ Prepare the entry to record the error if discovered in Year $9.$ Prepare the Year $8$ and Year $9$ retained earnings sections of the statement of stockholders' equity.

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

d$.$ Prepare the entry $($if needed$)$ to record the error if discovered in Year $10.$ Prepare the Year $9$ and Year $10$ retained earnings sections of the statement of stockholders' equity.

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$