On December 31, 2015, Grover Company made the following errors:
a. Did not accrue interest of $7,500 owed on loans due next year
b. Did not accrue service revenue in the amount of $9,200
Assuming the financial statements are prepared before the errors are discovered, state the effects of each error on the financial statement elements by completing the chart below.

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Error a Error b Overstated Understated Overstated Understated Assets at Dec. 31,2016, would be Liabilities at Dec. 31, 2016, would be Net income for 2016 would be Owner's equity at Dec. 31, 2016, would be