Failure to record an adjusting entry 1. If a company fails to record an adjusting entry to accrue salaries payable, what is the effect on the accounting equation? Assets: Liabilities: Equity: 2. If a company fails to record depreciation expense at the end of an accounting period, what is the effect on the accounting equation? Assets: Liabilities: Equity: 3. On August 1, customer X pays $10,000 for work to be completed over the following six months (i.e., Deferred Revenue was credited for $10,000). The company completes all of the work in November. If the company fails to record an adjusting entry, what is the effect on the accounting equation? Assets: Liabilities: Equity