When it was preparing its financial statements for the year ended December 31, 2011, a company failed to record $3,000 of accrued salaries. These salaries were paid, and recorded as an expense, in 2012.
Required:
State the effect (if any) that this error will have on each of the following financial statement items:
a. Net earnings for 2011
b. Total assets on December 31, 2011
c. Total liabilities on December 31, 2011
d. Total shareholders' equity on December 31, 2011
e. Net earnings for 2012
f. Total assets on December 31, 2012
g. Total liabilities on December 31, 2012
h. Total shareholders' equity on December 31, 2012