• The Lerxst Company records these journal entries:

  Depreciation	$75
  Accrued Expense	$18
  Earned portion of Unearned Revenue	$95
  Dividends declared but not paid	$25

  Indicate the net effect of these journal entries on the following items. Indicate the dollar amount of the effect and the direction of the effect. (Example: $13 Increase, or $8 Decrease, or No Effect.)

• Net Income
• Total Assets
• Total Liabilities
• Retained Earnings
• Total Equity
• Working Capital

• The Dirk Company fails to record these journal entries:

  Accrued revenue	$65
  Payment of previously declared dividend	$35
  Expiration of prepaid rent	$28

  Determine the net effect of these errors on the following items. Indicate the dollar amount of the error and the direction of the error. (Example: $17 overstated, or $12 understated, or No Error.)

• Net Income
• Total Liabilities
• Total Assets
• Retained Earnings

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