During the monthly internal audit in the end of April, Young's senior accounting manager John discovered three suspicious journal entries. He would like to further investigate whether the accountants made those mistakes intentionally. The three journal entries were summarized as follows. Luckily, there were notes recorded by the accountants together with those entries. 1. Manufacturing Overhead Salary Payable $2,700 $2,700 Notes: this is for salary expenses incurred but not yet paid to staffs in the sales department. 2. Factory Labor Cash 100,000 100,000 Notes: this is to record factory labor costs for the month. The total amount of $100,000 includes the payroll taxes of $18,000. The remaining amount won't be paid till May 15th. 3. Work in Process Inventory Raw Materials Inventory $30 $30 Notes: this is to record the glue used during the manufacturing process. The amount is immaterial. Required: (a) After the investigation, John concluded that all the above three journal entries are incorrect. Please write the correct journal entries for the three events above (Note: please provide the correct journal entries only, no need to reverse the incorrect entries). i. Journalize the salary of $2,700 paid to staffs in the sales department. ii. Journalize the incurred factory labor cost of $100,000. iii. Journalize the cost of glue of $30. (3 marks) (b) How will the wrong journal entries affect the company's financial statements (income statement and/or statement of financial position)? Which account(s) will be affected? Will the balances be overstated or understated? Please explain the effect(s) for each set of incorrect journal entries separately. (6 marks)