You Are Reviewing O'Brian Co

Essay

You are reviewing O'Brian Co.'s adjusted trial balance for the year ended 12/31/09. You notice several omissions and incorrect items during your review, some of which are noted below. For each one, you are to determine what effect, if any, these items would have on the stated components of O'Brian Co.'s 2009 Income Statement and 12/31/09 Balance Sheet if they are not corrected or updated. Assume, no income taxes.
Use the following code for your answers. You need not include any dollar amounts.
N = No Effect
O = Overstated
U = Understated
- $\begin{array}{|l|c|c|c|c|}\hline \text { Additional Information } & \begin{array}{c}12 / 31 / 09 \\\text { Assets }\end{array} & \begin{array}{c}12 / 31 / 09 \\\text { Liabilities }\end{array} & \begin{array}{c}12 / 31 / 09 \\\text { Owners' } \\\text { Equity }\end{array} & \begin{array}{c}2009 \\\text { Net } \\\text { Income }\end{array} \\\hline \begin{array}{l}\text { The journal entry for depreciation on } \\\text { equipment for } 2009 \text { was recorded for } \\\$ 48,000 . \text { It should have been } \$ 66,000 .\end{array} & \\\hline\end{array}$