After preparing its financial statements for June, Pinnacle Corporation realizes that its income statement shows total revenues that are $$500$ too high and total expenses that are $$500$ too low. What effect will these errors have on Pinnacle$$s balance sheet for the month, assuming all other account balances listed on that sheet are correct?

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These errors mean that the firm$$s balance sheet will show a total liabilities and stockholders$$ equity amount that is $$1,000$ lower than its total assets amount.

These errors mean that the firm$$s balance sheet will show a total liabilities and stockholders$$ equity amount that is $$500$ higher than its total assets amount.

These errors mean that the firm$$s balance sheet will show a total liabilities and stockholders$$ equity amount that is $$1,000$ higher than its total assets amount.

These errors mean that the firm$$s balance sheet will show a total liabilities and stockholders$$ equity amount that is $$500$ lower than its total assets amount