At the end of the preceding period, a company recorded accrued salaries payable of $3 500. On 2 July, the second day of the new period, the company debited Salaries Expense and credited Cash at Bank for $4 000.

(a) If a reversing entry had not been made on 1 July, would the financial statements be in error for the month of July? Explain.

(b) What entry should have been made on 2 July given that a reversing entry was not made?

(c) If the company made reversing entries, what reversing entry should have been made on 1 July and what entry would then be made on 2 July?