Printem Effects of Errors on Financial Statements The accountant for Healthy Life Company, a medical services consulting firm, mistakenly omitted adjusting entries for (a) unturned revenue sarted during the year ($34.900) and (b) accrued wages ($12,770). Iridicate the effect of each error, considered individually, on the income statement for the current year ended July 31. Also indicate the effect of each error on the July 31 balance sheet Enter all amounts as positive numbers. Enter "o in those spaces where there is no overstatement or no understatement. Error (a) The adjusting entry for unearned revenue camned during the year ($4,000) wat omitted, Overstated Understated 1. Revenue for the year would be 2. Expenses for the year would be 3. Net Income for the year would be 4. Assets at July 31 would be 5. Uabilities at July 31 would be 6. Stockholders' equity at July 31 would be Error (b) The adjusting entry for accrued wages ($12.770) was omited Overstated Understated 1. Revenue for the year would be 2. Expenses for the ver would be E UNE VI eatn error, considered individually, on the income statement for the current year ended July 31. Also indicate th error on the July 31 balance sheet. Enter all amounts as positive numbers. Enter "o" in those spaces where there is no overstatement or no understatement Error (a) The adjusting entry for unearned revenue earned during the year ($34,900) was omitted. Overstated Understated 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be 4. Assets at July 31 would be 5. Uabilities at July 31 would be 6. Stockholders' equity at July 31 would be Understated Error (b) The adjusting entry for accrued wages ($12,770) was omitted. Overstated 1. Revenue for the year would be 2. Expenses for the vear would be 5. Liabilities at July 31 would be 6. Stockholders' equity at July 31 would be Understated Error (b) The adjusting entry for accrued wages ($12,770) was omitted. Overstated 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be hol 4. Assets at July 31 would be 5. Labilities at July 31 would be 6. Stockholders' equity at July 31 would be bill ht o 6996 73F