please explain the effects that are in blue (I don't understand why equity is overstated 8000 and the income is understated 8000 in year 2 so I'm wanting an explanation on all of the effects for year 1 and 2)

8000 12/31 salaries ep Salaries payable 80200 salaries exp Salaries payable Cash 2000 8000 10,000 Accrued expenses (lielities): expenses incurred before cash is paid or liability recorded Example: Sparky pays employees every other Friday. Employees works days (M-F) and earn $1.000/day. Fiscal year-end and Dec 31 falls on the second Wednesday in the pay period. Provide the required AJE and the entry on Jan 2w of the next year (pay day). Salaries Payable Salarie Salaris Payable Caus Suppe the company didn't incur tw expense until it paid the cash on Jan 2. How would the liabilities, equity and act income be affected in the current and subsequent years ANNEL Y Year Libile qui Ye Ye NE 18knak Si NE NE NE 488 5000 Nowed in the bu ld till the re has liabilities understated by 0 33 words 02