Accrued salaries of $2,180 owed to employees for December 30 and 31 are not considered in preparing the financial statements for the year ended December 31, 2006 Indicate which items will be erroneously stated, because of the error, on (a) The income statement for December 2006 and (b) The balance ...

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Accrued salaries of $2,180 owed to employees for December 30 and 31 are not considered in preparing

Question:

Accrued salaries of $2,180 owed to employees for December 30 and 31 are not considered in preparing the for the year ended December 31, 2006. Indicate which items will be erroneously stated, because of the error, on
(a) The income statement for December 2006 and
(b) The as of December 31, 2006. Also indicate whether the items in error will be overstated or understated.

Financial Statements
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