An attorney has earned half of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned. What effect would this have on the balance sheet?

a$.$ Liabilities would be overstated, and stockholders' equity would be understated.

b$.$ Assets would be overstated, and liabilities would be understated.

c$.$ Liabilities and stockholders' equity would be understated.

d$.$ Assets and liabilities would be overstated.