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needs_help1234
Sep 25, 2007, 07:55 PM
I have to correct a balance sheet. It says the client failed to mention amounts for interest payable and for salaries payable. If I add them into the liabilities than my liabilities will be greater than my assets. so what do i do?!

CaptainForest
Sep 25, 2007, 08:46 PM
Interest Expense and Salaries Expense might also have been forgotten then.

And expenses lower your net income, which lowers your retained earnings.