Conceptual Connection: What would be the effect on the balance sheet and the income statement if the accountant failed to make the above adjusting entries?

Income Statement Balance Sheet

a$.$ Computer equipment purchased

Expenses understated

Assets overstated

b$.$ Prepaid insurance

Expenses understated

Liabilities overstated

c$.$ Unearned service revenue

d$.$ Rent owed is unrecorded

e$.$ Unearned rent revenue