The accountant for Glacier Medical Co., a medical services consulting firm, mistak enly omitted adjusting entries for (a) unearned revenue earned during the year ($6,900) and (b) accrued wages ($3,740). Indicate the effect of each error, consid- ered individually, on the income statement for the current year ended December 31. Also indicate the effect of each error on the December 31 balance sheet. Set up a table similar to the following, and record your answers by inserting the dollar amount in the appropriate spaces. Insert a zero if the error does not affect the item. EXERCISE 3-17 Effects of errors on financial statements Objective 3 1. a. Revenue understated, $6,900 Error (a) Error (b) Under- Under- Over- Over- stated stated stated stated $ $ 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be $ (continued) The accountant for Glacier Medical Co., a medical services consulting firm, mistak enly omitted adjusting entries for (a) unearned revenue earned during the year ($6,900) and (b) accrued wages ($3,740). Indicate the effect of each error, consid- ered individually, on the income statement for the current year ended December 31. Also indicate the effect of each error on the December 31 balance sheet. Set up a table similar to the following, and record your answers by inserting the dollar amount in the appropriate spaces. Insert a zero if the error does not affect the item. EXERCISE 3-17 Effects of errors on financial statements Objective 3 1. a. Revenue understated, $6,900 Error (a) Error (b) Under- Under- Over- Over- stated stated stated stated $ $ 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be $ (continued)