1. On April 1, 20X0, your company sublets office space to Babin, Co. for $1,000 a month on a lease that runs from April 1, 20X0 to November 30, 20X0. While preparing the trial balance at year end, you see that December rent was accrued for Babin even though the lease expired at the end of November.
2. What is the correcting journal entry?
3. If no correcting journal entry is recorded, how are the 20X0 income statement and balance sheet, respectively, affected?