Prepayments, Collections in Advance Greensboro Properties, Inc., owns a building in which it leases office space to small businesses and professionals. During 2011, Greensboro Properties engaged in the following transactions: . On March 1, Greensboro Properties paid $11,520 in advance to Patterson Insurance Company for one year of insurance beginning March 1, 2011. The full amount of the prepayment was debited to prepaid insurance 6. On May 1, Greensboro Properties received $30,720 for one year's rent from Angela Cottrell, a lawyer and new tenant. Greensboro Properties credited unearned rent revenue for the full amount collected from Cottrell c. On July 31, Greensboro Properties received $241,200 for six months' rent on an office building that is occupied by Newnan and Calhoun, a regional accounting firm. The rental period begins on August 1, 2011. The full amount received was credited to unearned rent revenue d. On November 1, Greensboro Properties paid 58.100 to Pinkerton Security for three months' security services beginning on that date. The entire amount was debited to prepaid security Services 3. What would be the total effect on the income statement and balance sheet if these entries were not recorded? Input all amounts as positive values. a. Expenses would be understated and assets would be overstated. In b. Revenues would be understated and liabilities would be overstated. C. Revenues would be understated and liabilities would be overstated. I d. Expenses would be understated and assets would be overstated. Revenues Understated Expenses Net income stated Assets Overstated Liabilities Retained earnings Understated