Jane Company collected $5,000 cash in advance on December 1, 2007 for services to be performed in December 2007 and the remainder in 2008. A temporary account was credited to record the December 1, 2007 transaction. Jane prepares financial statements as of December 31. If an adjusting entry was not made at end of December, 2007:

a. Total liabilities at 12/31/07 would be understated and total assets at 12/31/07 would be overstated.

b. Total liabilities at 12/31/07 would be overstated and total assets at 12/31/07 would be understated.

c. Total liabilities at 12/31/07 would be overstated, total revenue at 12/31/07 would be understated and total revenue at 12/31/08 would be overstated

d. Total liabilities at 12/31/07 would be understated, total revenue at 12/31/07 would be overstated and total revenue at 12/31/08 would be understated.

e. None of the above.