Question: Indicate the effectUnderstate, Overstate, No Effectthat each of the following errors has on 2012 net income and 2013 net income. 2012 2013 (a) Equipment purchased

Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2012 net income and 2013 net income.

2012 2013
(a) Equipment purchased in 2010 was expensed. _____ _____
(b) Wages payable were not recorded at 12/31/12. _____ _____
(c) Equipment purchased in 2012 was expensed. _____ _____
(d) 2012 ending inventory was overstated. _____ _____
(e) Patent amortization was not recorded in 2013. _____ _____

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