The income statement of Carla Vista Co. for the month of July shows net income of $4,000 based on Service Revenue $7,750, Salaries and Wages Expense $2,140, Supplies Expense $960, and Utilities Expense $650. In reviewing the statement, you discover the following:_______.
1. Insurance expired during July of $530 was omitted.
2. Supplies expense includes $360 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $180 was omitted.
4. Accrued but unpaid wages at July 31 of $380 were not included.
5. Service performed but unrecorded totaled $800.
Required:a. What effect do the corrections have on the amount reported as total assets on the balance sheet?b. What effect do the corrections have on the amount reported as total liabilities on the balance sheet?