Indicate which items will be erroneously stated, because of failure to correct the initial error, on…

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Assume that the error in was not corrected and that the $3,100 of accrued salaries was included in the first salary payment in January 2004. Indicate which items will be erroneously stated, because of failure to correct the initial error, on (a) the income statement for January 2004 and (b) the balance sheet as of January 31, 2004.

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