Sharleens Wigs reported cost of goods sold as follows:

2024 2025

Beginning inventory $ 54,000 $ 64,000

Cost of goods purchased 847,000 891,000

Deduct ending inventory (64,000) (55,000)

Cost of goods sold $837,000 $900,000

Sharleens made two errors:

1. 2024 ending inventory was overstated by $3,000.

2. 2025 ending inventory was understated by $9,000.

Instructions

Assuming the errors had not been corrected, indicate the dollar effect that the errors had on the items appearing on the financial statements listed below. Also indicate if the amounts are overstated (O) or understated (U).

2024 2025

Amount O/U Amount O/U Total Assets Owner's Equity Cost of goods sold Profit Blank 1: Blank 2: Blank 3: Blank 4: Blank 5: Blank 6: Blank 7: Blank 8: Blank 9: Blank 10: Blank 11: Blank 12: Blank 13: Blank 14: Blank 15: Blank 16: