Final answer:
The omission of recording the $5,000 of unpaid salaries would lead to an overstatement of net income, as expenses were not properly accounted for, and total liabilities would be understated while total assets would not be directly affected.
Step-by-step explanation:
If the accountant for Jones Auto Repair, Inc. failed to make an adjusting entry to record $5,000 of unpaid salaries for the last two weeks of the year, the effect of this omission would be that the net income will be overstated. This is because expenses that should have been recognized in the current period were omitted, resulting in higher reported earnings than actually earned. Additionally, the total liabilities will be understated because the unpaid salaries represent an obligation that the company has yet to fulfill. Conversely, total assets will not be directly affected by this omission since the failure to record the unpaid salaries does not impact the actual assets held by the company.