Accrued salaries of $6,750 owed to employees for December 30 and 31 are not considered in preparing the financial statements for the year ended December 31, 2012. Indicate which items will be erroneously stated, because of the error, on
(a) The income statement for December 2012 and
(b) The balance sheet as of December 31, 2012.
Also indicate whether the items in error will be overstated or understated.