Alpha, Inc., made errors and/or omissions during the current year as described below. Indicate the effect of these errors and omissions on total assets, total liabilities, and net income for the year using the following code: O = overstated, U = understated, N = no effect. Alpha uses a periodic inventory system and a year ending December 31. Ignore income taxes.

1. Failed to record AJE: The company has a $20,000, 9- month, 12% note payable outstanding at the end of the year. The note was issued on October 1. The interest is to be paid when the note is paid.