The following errors were made in the accounting records of Garceau Corp. in 2013 and were not discovered until 2014.

a. The journal entry to record a receipt of $3,170 for Consulting Revenue was incorrectly recorded as $7,310.

b. A $2,400 credit to Accumulated Amortization, Automobile account was incorrectly credited to Automobile account.

c. A payment of $2,800 for dividends was incorrectly debited to Salary Expense account.

d. Salary expense for 2013 of $1,650 was not recorded. It was recorded as Salary Expense in 2014 when it was paid.

e. A $1,850 credit to Unearned Revenue was posted to Accounts Receivable.

Requirements

For each of the independent errors in parts (a) through (e), identify the net effect on assets, liabilities, shareholders€™ equity, and net income for 2013 and 2014. Show understatements by €œU,€ overstatements by €œO,€ and no effect by €œNE,€ and identify their amounts.

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Assets Liabilities Shareholders' Equity Net Income 2013 2014201320142013 2014 20132014