Question: Required: Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Statement of Financial

Required: Show how the following independent errors will affect net income on the Income Statement and the stockholders' equity section of the Statement of Financial Position (SFP) stating plus for overstated, minus for understated, and zero for no effect.

2018 2019

income Income

Statement SFP Statement SFP

1. Ending inventory in 2018 overstated.

2. Failed to accrue 2018 interest revenue.

3. Failed to accrue 2018 wages.

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