CITOT * Jumployees are owed $400 for services since the last payday in June, to be paid the First week of July . No adjustment was made for this item . As a result of t :` B . June net income is understated . D . Liabilities at June 30 are overstated Owner's equity at June 30 is overstated Assets at June 30 are overstated . 11 . None of the above. On December 1 , 2012, the stockholders of Cape Corporation invested an additional $800,000 in the Corporation and received additional shares of common stock . The effect on the accounting equation would include : V B . Liabilities-increased C . Retained Earnings increased D . Owners " equity decreased - Assets decreased , None of the above