Analyzing and Computing Accrued Wages Liability and Expense Demski Company pays its employees on the 1 st and 15 th of each month, it is March 31 and the company is preparing financial statements for this quarter. its. employees have earned $50,000 since the 15 th of March and have not yet been paid How will Demski's balance sheet and income statement refiect the accrual of wages on March 31 ? wages payable by $ on the balance sheet. wages expense by 1 on the income statement. Indicate the effect on the balance sheet and income statement accounts if Demski failed to make thas accrual for each account indicate whether it would be overstated or understated