Trinity Company discovered the following errors in Year $2.$

Interest expense of $$3,000$ was not accrued at the end of Year $1.$ The amount was paid and expensed in

Year $2$ instead.

Supplies account at the end of Year $1$ was not adjusted for supplies used. The supplies account was reduced

in Year $2.$

An error in the input of salvage values and useful lives into the depreciation system resulted in an overstate$-$

ment of depreciation expense by $$5,000$ in Year $1.$ Depreciation expense was calculated correctly in Year $2.$

A $$5,000$ accrual for vacation earned in Year $1($but taken in Year $2)$ was not included in the financial state$-$

ments in Year $1.$

The insurance premium of $$800$ covering Year $2,$ and paid in December of Year $1,$ was expensed in Year $1.$

Required

a$.$ Indicate how each item would impact net income in Year $1($overstatement$,$ understatement, or no effect$).$

b$.$ Indicate how each item would impact net income in Year $2($overstatement$,$ understatement, or no effect$).$