Perez Corporation discovered in 2025 that it had incorrectly recorded in 2024 a cash payment of $75,000 for utilities expense. The correct amount of the utilities expense was $70,000 Requirements 1. Determine the effect of the error on the accounting equation in 2024 2. How should this error be reported in the 2025 financial statements? Requirement 1. Determine the effect of the error on the accounting equation in 2024 In 2024, the error equity would be utilities expense and Requirement 2. How should this error be reported in the 2025 financial statements? The error would be designated as a as by In 2024, total stockholders' in 2025