Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2012 net income and 2013 net income.
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2012 |
2013 |
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(a) Equipment purchased in 2010 was expensed. |
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(b) Wages payable were not recorded at 12/31/12. |
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(c) Equipment purchased in 2012 was expensed. |
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(d) 2012 ending inventory was overstated. |
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(e) Patent amortization was not recorded in 2013. |