Identify the impact on the balance sheet if the following information is not used to adjust the accounts: Interest accrues on notes payable at the rate of $200 per month.

a. Liabilities overstated and Stockholders' Equity understated by $200.

b. None of these answers are correct.

c. Liabilities understated and Stockholders' Equity understated by $200.

d. Liabilities overstated and Stockholders' Equity overstated by $200.

e. Liabilities understated and Stockholders' Equity overstated by $200.