please help

Lansing Cycles failed to record an adjusting entry for accrued expenses at the end of June. What effect does this have on the financial statements? Assets are overstated and expenses are understated. Expenses are overstated and revenues are understated. Expenses and liabilities are understated. Revenues and expenses are understated. At December 31, 2022, before any year-end adjustments, Splish Brothers Inc. Prepaid Insurance account had a balance of $6960. It was determined that $3120 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: $3360 $3120 $6960 $3840