On December 31, Price Company receives a utility bill in the mail for $800. Price Company intends to pay the bill in early January of next year. 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)?