and recorded the transaction with a debit to Prepaid Rent. The December 31,2017 adjusting entry is: A) Debit Prepaid Rent and credit Rent Expense for ( 50,000 ). B) Debit Rent Expense and credit Prepaid Rent for ( 50,000 ). C) Debit Prepaid Rent and credit Rent Expense for ( 70,000 ). D) Debit Rent Expense and credit Prepaid Rent for ( 70,000 ). 2. The financial statements of ABC Company for the year ended 31 December 2017 contained the following errors: Assume that the 2017 errors were not corrected and that no errors occurred in 2016. what amount will 2017 net income be overstated or understated? A) ( 70,000 ) overstatement B) ( 30,000 ) overstatement C) ( 70,000 ) understatement D) ( 30,000 ) understatement

and recorded the transaction with a debit to Prepaid Rent. The December 31,2017 adjusting entry is: A) Debit Prepaid Rent and credit Rent Expense for 50,000. B) Debit Rent Expense and credit Prepaid Rent for 50,000. C) Debit Prepaid Rent and credit Rent Expense for 70,000. D) Debit Rent Expense and credit Prepaid Rent for 70,000. 2. The financial statements of ABC Company for the year ended 31 December 2017 contained the following errors: Assume that the 2017 errors were not corrected and that no errors occurred in 2016. what amount will 2017 net income be overstated or understated? A) 70,000 overstatement B) 30,000 overstatement C) 70,000 understatement D) 30,000 understatement