Over$/$Under: During the year, Alpha recorded the prepayment of $$12,000($$$1,000$ per month$)$ for one year of rent as a debit to Rent Expense and a credit to Accounts Payable for the full amount. Alpha used $10$ months of rent during the year. An AJE was not recorded at the end of the year.$$ Failure to record the correct journal entry and AJE has what effect on assets, liabilities, and net income?

$$

Assets: Overstated

Liabilities: Overstated

Net Income: Understated

It says that this is the correct answer can you explain how?