Question Effects of Errors on Financial Statements The accountant forHallmark Medical Co., a medical services consulting firm,mistakenly omitted adjusting entries for (a) unearned revenueearned during the year ($27,280) and (b) accrued wages ($4,780).Indicate the effect of each error, considered individually, on theincome statement for the current year ended May 31. Also indicatethe effect of each error on the May 31 balance sheet. Enter allamounts as positive numbers. Enter "0" in those spaces where thereis no overstatement or no understatement. Error (a) The adjustingentry for unearned revenue earned during the year ($27,280) wasomitted.

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