(Solved): Demski Company pays its employees on the 1st and 15th of each month. It is March 31 and Demski is ...

Demski Company pays its employees on the 1st and 15th of each month. It is March 31 and Demski is preparing financial statements for this quarter. Its employees have earned \( \$ 41,000 \) since the 15th of March and have not yet been paid. 1) Will Demski increase or decrease wages payable and wages expenses by \( \$ 41,000 \) to reflect the accrual of wages on March \( 31 ? 2 \) ) Will Demski's Liabilities, net income and stockholders' equity be overstated or understated, respectively, if Demski failed to make this accrual?