At the end of January, the first month of the business year, the usual adjustment transferring rent

Question:

At the end of January, the first month of the business year, the usual adjustment transferring rent earned of $29,500 to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on
(a) The income statement for January and
(b) The as of 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...