Show how the following independent errors will affect Net Income on the Income Statement and the Stockholders' Equity section of the Balance Sheet using the following abbreviations: O = Overstated; U = Understated; NE = No Effect. Complete the schedule on the answer sheet for each item below:

1. Ending inventory in 2014 overstated.

2. A capital expenditure for factory equipment (useful life, 5 years) was erroneously charged to Maintenance Expense in 2014.

3. Failed to accrue 2014 wages. The wages were paid in 2015 and recognized as expense at that time.