A. Indicate the effect of the given errors: On the net income of the current year, On the total current assets as of the end of the year, On the total current liabilities as of the end of the year, and On the balance of retained earnings as of the end of the year. Write the words overstated, understated, or no effect in each of the space provided. Error Net Current Current Retained income assets liabilities earnings Ending merchandise inventory was 1. understated 2. Sales on account was understated. 3. Cash purchases was understated. 4. Purchases on account was overlooked. 5. Prepaid taxes was overlooked. 6. Unearned income was understated. 7. Accrued wages was understated. 8 Accrued interest income was understated. 9. Doubtful accounts was not adjusted 10 Depreciation of the equipment was understated. B. The following errors were discovered before preparing the closing entries of 2011 nominal accounts. Indicate the effects of each error on the net income of 2009, 2010 and 2011. For your answer, write the words overstated, understated, no effect, or it depends in each space provided. Net income Error 2009 2010 2011 1. Ending inventory of 2010 was overstated. 2 Ending inventory of 2011 was understated. 3 Sales of 2009 was taken up in 2010. 4. Sales of 2010 was taken up in 2011. 5 Sales of 2010 was taken up in 2009. 6. Sales of 2011 was taken up in 2010. 7. Purchases of 2009 was taken up in 2010. B. Purchases of 2010 was taken up in 2011. 9 Purchases of 2011 was taken up in 2010. 10 Accrued expenses at the end of 2009 was overstated. Accrued expenses at the end of 2010 was 11 understated Accrued expenses at the end of 2011 was 12 overstated Prepaid expenses at the end of 2009 was 13 understated Prepaid expenses at the end of 2010 was 14 overstated Prepaid expenses at the end of 2011 was 15 overstated Accrued income at the end of 2009 was 16 overstated Accrued income at the end of 2010 was 17 understated Accrued income at the end of 2011 was 18 overstated.Unearned income at the end of 2011 was 19. understated. 20. Unearned income at the end of 2010 was understated. Unearned income at the end of 2011 was 21. understated. 22. Depreciation of 2009 was overstated 23. Depreciation of 2010 was understated. 24 Depreciation of 2011 was overstated. 25. Doubtful accounts of 2009 was not taken up. 26. Doubtful accounts of 2010 was not taken up. 27. Doubtful accounts of 2011 was not taken up