Question: (30 marks) Show how the following independent errors will affect net income on the income statement and the shareholders' equity section of the statement of

(30 marks) Show how the following independent errors will affect net income on the income statement and the shareholders' equity section of the statement of financial position (SFP) using the symbol + (plus) for overstated, - (minus) for understated, and 0 (zero) for no effect. 2019 2020 Scenario Income Balance Statement Sheet (SFP) Income Balance Statement Sheet (SFP) 0 1 2 Ending 2019 inventory overstated (Sample) Failure to accrue 2019 interest revenue A capital expenditure for factory equipment (useful life, 5 years) was charged to expense in error in 2019 Failure to accrue 2019 wages Ending inventory in 2019 understated 3 4

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