Coyne Corporation recently hired Elaine Herrold as its new bookkeeper. Herrold was not very experienced and made seven recording errors during the last accounting period. The nature of each error is described in the following table.
Instructions
Indicate the effect of the following errors on each of the financial statement elements described in the column headings in the table. Use the following symbols: O = overstated, U = understated and NE = noeffect.

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Total Total Total Owners Revenue Expenses Income Assets Liabiliies Equity Total Net Error Recorded a dividend as an expense reported in the income statement. a. b. Recorded the payment of an account payable as a debit to accounts payable and a credit to an expense account. c. Failed to record depreciation expense d. Recorded the sale of capital stock as a debit to cash and a credit to retained earnings Recorded the receipt of a customer deposit as a debit to cash and a credit to fees earned e. f. Failed to record expired portion of an insurance policy Failed to record accrued interest earned on an outstanding note receivable g.