The accountant for Hallmark Co., a construction firm, mistakenly omitted adjusting entries for
(a) Unearned revenue earned during the year ($18,000)
(b) Accrued wages ($3,000). Consider each error individually and indicate the effect on the income statement for December 31. Also indicate the effect of each error on the December 31 balance sheet. Set up a table as follows and record your answers by inserting the dollar amount in the appropriate spaces. Insert a zero if the error does not affect the item.

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Error (a) Over- stated Under- stated Error (b) Over Under- stated stated 1. Revenue for the year would be 2. Expenses for the year would be 3. Net income for the year would be 4. Assets at December 31 would be 5. Liabilities at December 31 would be 6. Owner's equity at December 31 would be $