Effect of Omitting Adjusting Entry At the end of October, the first month of the business year, the usual adjusting entry transferring rent eamed to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (A) the income statement for October and (8) the balance sheet as of October 31. Also indicate whether the items in error will be overstated or understated. a. Income Statement Rent Revenue Net Income b. Balance Sheet Unearned Rent Stockholders' Equity Adjusting Entry for Supplies The balance in the supplies account, before adjustment at the end of the year, is $9,000. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,575. If an amount box does not require an entry, leave it blank