P22-88 (04) Comprehensive on Analysia On March 5, 2015, you wind by Mind Hang a dowy held and 2017, you do that no adjuments have yet boot made to the meme bd below 3 income of 800 was not and at the end of 2016 It was corded when retri2017 Furniture ing $16,000 was expened when purchased on July 1, 2006 expected to have a 10-year i salvage value. The company typically use straight line depreciation for all veta Ranch and develope cost of $1,000 we incurred early in 2016 They www capunal and www to be an over a 4-year period Amortization of $19,000 was recorded for 2016 and $19,000 for 2017 4 On January 2, 2016, Miami Hangers had a building for 5 years at a mohly real of $12000. On that date, the company paid the following amounts, which were expered when paid 12 The company received $20,000 from a customer at the beginning of 2016 for services that it is to be performed evenly over a2-year period beginning in 2016 None of the amount received was reported as named venue at the end of 2016 6. Merchandise inventory costing $34,600 was in the warehouse at December 31, 2016, but was incorectly cited from the physical count at that date The company uses the periodic inventory method. Instructions Indicate the effect of any errors on the net income figure ported on the income statement for the year ending December 31, 2016, and the retained earnings figure reported on the balance sheet at December 31, 2017. Assume all amounts are material, and gone income tax effects. Using the following format, enter the appropriate dollar amounts in the appropriate celum Con sider each item independent of the other items. It is not necessary to total the column on the d hm Net Income for 2014 Oventated Understated Retained Eamings 12/31/17 Ond Understated (CIA adapted)