You've been hired by ABC Company to QUESTION $3$

If ABC did not do either of the adjusting entries associated with Transactions A and $B($from the above information$)$

on December $31,2015,$ determine the cumulative effect of all errors on assets, liabilities and equity at December

$31,2015.$

Answer Format: Use $O$ for overstated, $U$ for understated, and NE for No Effect. Do not space between the

$\frac{O}{U}\frac{?}{NE}$ and the dollar amount of the error. $($Example: If Assets are Over by $$2,000,$ record your answer as

O$2000)$review several transactions that were omitted as Adjusting Entries at December $31,2015$ as the bookkeeper was new and uncertain on how to record them. For each of the transactions listed below, record the appropriate AJE that would have been required at December $31$st$.$

Transactions:

A$.$ On September $1,2015,$ ABC received a $$15,000$ advance payment from a customer for services to be performed evenly over the next $15$ months. The original entry was credited to a real account.

B$.$ On March $1,2015,$ ABC paid $$12,720$ for a four$-$year insurance policy. ABC debited a nominal account at that time.