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The following errors occurred during 20X1. 1. Inventory costing $3,000, purchased on December...

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Accounting

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The following errors occurred during 20X1. 1. Inventory costing $3,000, purchased on December 29, FOB shipping point was not included in the ending inventory count. The inventory and related invoice arrived on January 2, 20X2. 2. On January 2, the cost of maintaining equipment in the amount of $40,000 was debited to the Equipment account. The company depreciates equipment over four years, with no estimated salvage value. 3. The cost of supplies purchased during the year was expensed as incurred. No adjusting entry was made for supplies costing $1,000 that were still on hand at December 31. Assume that the errors were not discovered. Complete the following table, indicating the effect on Financial Statement categories for 20X1. You must list understated, overstated, or no effect for each category and you must include the dollar value if the effect is overstated or understated. Assets Liabilities Equity Net Income Error No. 1 0 2 3

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