When the records of Hilda Corporation were reviewed at the close of 2011, the following errors were discovered.

Instructions
For each item, indicate by a check mark in the appropriate column whether the error resulted in an overstatement or understatement, or had no effect on net income for the years 2010 and 2011.

Transcribed Image Text:

Over- statement 2010 Under- tatement No Effect Over statement 2011 Under- statement No Effect 1. Failure to record amortization of patent in 2011 2. Failure to record the correct amount of ending 2010 inventory (the amount was understated because of a calculation error 3. Failure to record merchandise purchased in 2010 (it was also omitted from ending inventory in 2010 and remained unsold at the end of 2011) 4. Failure to record accrued interest on notes payable n 2010 (the amount was recorded when paid in 2011) 5. Failure to reflect supplies on hand on balance sheet at end of 2010