When the records of Debra Hanson Corporation were reviewed at the close of

2015, the er r ors listed below we r e discove r ed. For each item, indicate by a check mark in the appropriate column whether the er r or r esulted in an overstatement, an understatement, or had no e f fect on net income

for the years 2014 and 2015.

	2014			2015
	Over- statement	Under- statement	No Effect	Over- statement	Under- statement	No Effect
1. Failure to record amortization of patent in 2015.
2. Failure to record the correct amount of ending 2014 inventory. The amount was understated because of an error in calculation.
3. Failure to record merchandise purchased in 2014. Merchandise was also omitted from ending inventory in 2014 but was not yet sold.
4. Failure to record accrued interest on notes payable in 2014; that amount was recorded when paid in 2015.
5. Failure to reflect supplies on hand on balance sheet at end of 2014.