D Question 1 1.1 pts FMI Inc. pays its rent of $120,000 annually on January 1. If the February 29 monthly adjusting entry for prepaid rent is omitted, which of the following will me true Assets will be overstated by $20,000 and net income and stockholders' equity will be understated by $20,000 Failure to make the adjustment does not affect the February financial statements Assets will be overstated by $10,000 and net income and stockholders' equity will be overstated by $10,000. O Assets will be understated by $10,000 and liabilities will be understated by $10,000 Expenses will be overstated by $10,000 and net income and stockholders' equity will be understated by $10,000