Mitchell Company's employees earn $520 per day and are paid on Friday for a five-day work week. This year, December 31 is a Thursday. If the appropriateadjusting entryis not made at the end of the year, what will be the effect on:

(a)Income statementaccounts (overstated, understated, or no effect)?

(b)Net income(overstated, understated, or no effect)?

(c)Balance sheetaccounts (overstated, understated, or no effect)?