Indicate the effect-Understated (U), Overstated (O), or No Effect (NE)-that each of the following errors has on

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Indicate the effect-Understated (U), Overstated (O), or No Effect (NE)-that each of the following errors has on 2013 net income and 2014 net income:

                                                                                                        2013........... 2014 _

Wages payable were not recorded at Dec. 31, 2013................._____________

Equipment purchased in 2012 was expensed. ........................_____________

Equipment purchased in 2013 was expensed.........................._____________

Ending inventory at Dec. 31, 2013, was overstated.................._____________

Patent amortization was not recorded in 2014. ......................._____________

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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