The following case has an error in the journal entry.

On January 1, Apple, Inc. hired a new software developer on a yearly salary of $240,000. On January 31, Apple paid the software developer $20,000 in cash for his first month of work. Apple debited an asset called Human Capital, $20,000 and credited cash, $20,000.

The following case has an error in the journal entry. On January 1, Apple, Inc. hired a new software developer on a yearly salary of $240,000. On January 31, Apple paid the software developer $20,000 in cash for his first month of work. Apple debited an asset called Human Capital, $20,000 and credited cash, $20,000. Assets are overstated by $20,000 O Liabilities are not affected Revenues are overstated by $20,000 Expenses are understated by $20.000 Shareholders' Equity is not affected There is no mistake