At the end of January, the first month of the business year, the accountant omitted the usual

Question:

At the end of January, the first month of the business year, the accountant omitted the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account. Because of the error, which items will be incorrectly stated on?
(a) The income statement for January
(b) The as at January 31? Also indicate whether the items in error will be overstated or understated.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...