Home Team Corporation recently hired Steve Willits as its bookkeeper. Mr. Willits is somewhat inexperienced and has made numerous errors recording daily business transactions.
Indicate the effects of the errors described below on each of the financial statement elements shown in the column headings. Use the following symbols: O for overstated; U for understated, and NE for noeffect.

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Total Owners Income Assets Liabilities Equity Net Total Error Recorded the issuance of capital stock by debiting Capital Stock and crediting Service Revenue Recorded the declaration and payment of a dividend by debiting Capital Stock and crediting Cash Recorded the payment by debiting Cash and crediting Rent Expense of an account payable Recorded the collection of an outstanding account receivable by debiting Cash and crediting Service Revenue Recorded client billings on account by debiting Accounts Receivable and crediting Advertising Expense Recorded the cash purchase of land by debiting Supplies Expense and crediting Notes Payable Recorded the purchase of a building on account by debiting Cash and creditirn Dividends Payable