A payment for insurance on 1 June for $120 000, covering the period 1 June 2018 to 31 May 2019, was recorded as a prepayment. No adjusting entry was made at 30 June 2018. As a result: Select one: . a profit and total assets were overstated by $10 000. O b. profit and total assets were overstated by $120 000. oc. profit and total assets were understated by $110 000. od profit was overstated by $10 000 and assets understated by $10 000. Clear my choice