Error (a) Error (b) Overstated Understated Overstated Understated 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 August 31 would be $ ____ $ ____ $ ____ $ ____ 5. Liabilities at August 31 would be $ ____ $ ____ $ ____ $ ____ 6. Owner’s equity at August 31 would be $ ____ $ ____ $ ____ $ ____
Answer:
Error (a) Error (b) Over- stated Under- stated Over- stated Under- stated 1. Revenue for the year would be……………… $ 0 $23,250 $ 0 $ 0 2. Expenses for the year would be…………….. 0 0 0 4,000 3. Net income for the year would be…………... 0 23,250 4,000 0 4. Assets at August 31 would be………………. 0 0 0 0 5. Liabilities at August 31 would be…………… 23,250 0 0 4,000 6. Owner’s equity at August 31 would be……. 0 23,250 4,000 0