On December 31, Coleman Company receives a utility bill in the mail for $680. Coleman Company intends to pay the bill in early January of next year. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on:

(a) Income statement accounts (overstated, understated, or no effect)?

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

(c) Balance sheet accounts (overstated, understated, or no effect)?

Income Statement Accounts Revenue Choose One \ Expense: Choose One + Net Income: Choose One Balance Sheet Accounts Assets: Choose One Liabilities: Choose One Retained Earnings: Choose One