Response to the following problem:
Goshen Hospital paid an account payable of $4,500 during December 20X1. In the transaction entry, however, the debit was made to supplies expense. The error was not discovered until after the financial statements for 20X1 were prepared.
What effect would this error have on total assets, total liabilities, and hospital net assets, as reported in the hospital's December 31, 20X1, balance sheet?