Assume that the error in Exercise 3-15 was not corrected and that the $2,180 of accrued salaries

Question:

Assume that the error in Exercise 3-15 was not corrected and that the $2,180 of accrued salaries was included in the first salary payment in January 2007. Indicate which items will be erroneously stated, because of failure to correct the initial error, on
(a) The income statement for January 2007 and
(b) The as of January 31, 2007.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...