On 1 October of the current year, Sagir Appraisal Company received \(\$ 1980\) in advance from the Land-Ho Real Estate Agency for six months' rent of office space.

Required:

a Prepare the Sagir Appraisal Company journal entries to record the following:

i The receipt of the payment 

ii The adjustment for rent revenue at the end of the current year.

b If the adjusting entry had not been made in (a-ii), discuss what effect this error would have on the accounts and totals listed on the income statement and balance sheet.