On September 1, Shoeshine Corporation received $16000 for six months of rent in advance. The corporation credited Unearned Rent. if the appropriate adjusting entry is not made at the end of the year, what will be the effect on:

Account Overstated, Understated, or

No Effect?

1) Income Statement Accounts

Revenue:

Expense:

2) Net Income:

3) Balance Sheet Accounts

Assets:

Liabilities:

Retained Earnings: