Question 11 Listed below are two separate independent situations that resulted in an error in applying accounting principles or applications. For each situation, indicate the effect of the error on the various elements of the current year's financial statements. Use the following letters to indicate the effect. Be sure to use the exact notation O, U, or NE in your answers as the grading key is looking for an exact match. - Overstatement U-Understatement NE - No Effect The accountant failed to accrue the interest on one of the bonds the company holds as a trading investment. This would cause assets to equity to be revenue to be and expenses to be and net income to be . costs be liabilities to be The accountant failed to recognize the unrealized gains on the company's portfolio of equity investments. This would cause assets to be liabilities to be equity to be revenue to be costs and and net income to be expenses to be The accountant failed to amortize the discount on bonds the company is holding as a "held-to-maturity" investments. This would cause equity to be revenue to be assets to be liabilities to be and net income to be costs and expenses to be When issuing bonds with detachable warrants, the accountant misallocated the proceeds and understated the bond portion. This would cause assets to be liabilities to be equity to be revenue to be and net income to be costs and expenses to be