Effect of omitting adjustment At the end of August, the first month of the business year, the usual adjustment transferring rent earned of $36,750 to a revenue account from the unearned rent account was omitted. Indicate whether each of the items below will be overstated or understated as a result of the omission. Also indicate which financial statement is affected by each error. Overstated/Understated Financial Statement Account Rent revenue (or revenues) Net income ol rs' equity (retained earnings) Unearned rent (or liabilities)