Aladdin Company paid $$4,800$ on June $1,2$XX$1$ to rent a magic lantern for two years and recorded the entire amount as Rent Expense.

What is the impact on your financial statements if you fail to make this Adjusting entry? $(U=$ understated, $O=$ overstated, $OK=OK)$

Expense

Net income

Assets

Liabilities

Owner's equity