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Using an O (overstated), U (understated), or N (neither), identify the effect of errors or omissions, if any, for Alpha's assets, liabilities, and net income. Assume that the error or omission wasn't corrected by the end of the year (December 31). Also assume that the whole journal entry or AJE was recorded or not recorded unless the facts state something different. For questions with two parts, you must combine them and give only one answer. Use CAPITAL letters. Total Total Liabilities Net Income Alpha made a cash purchase of inventory (using the periodic inventory system) but erroneously recorded it as a debit to Supplies and a credit to Accounts Payable. The inventory was counted in ending inventory. Alpha paid cash to satisfy an account payable but erroneously recorded it as paying a dividend to shareholders (to satisfy dividends payable). 4. Alpha failed to record two transactions: (1) a $300 cash sale to a customer and (2) a credit purchase of inventory from a vendor for $800 using the periodic inventory system. It was received and included in ending inventory. Ignore closing entries and AJES. Alpha purchased merchandise on credit with terms F.O.B. Destination. As of December 31, the merchandise had not yet been received by Alpha. Alpha did not record the purchase or include the merchandise in ending inventory. Alpha uses the periodic inventory system. Alpha failed to record two transactions that should have been recorded: (a) supplies purchased on credit for $1,400 and (b) the payment of $1,100 to satisfy an account payable. Ignore any AJES. 5. 6. Alpha failed to record two types of AJES (as described in class): a deferred revenue (not an unusual AJE) and an accrued revenue. Alpha failed to record the journal entries for a customer's return of merchandise for cash. Alpha uses the perpetual inventory system. 8. Alpha received $300 from a loan obtained at Beta Bank. However, Alpha erroneously recorded the loan as a credit sale because the regular bookkeeper was on vacation. Ignore any interest. 9. During the year, Alpha recorded the prepayment of $12,000 ($1,000 per month) for one year of rent as a debit to Rent Expense and a credit to Accounts Payable for the full amount. Alpha used 10 months of rent during the year. An AJE was not recorded at the end of the year. Alpha failed to record two transactions that should have been recorded: (1) issue of common stock for cash of $800 and (2) $700 cash received to satisfy an account receivable. 10

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