Question 1) On November 1, 20X3, your calendar year company receives $40,000 for space it is subletting for 5 months (November 1, 20X3 through March 31, 20X4). The $40,000 was recorded as a liability. On December 31, 20X3, you discover that an adjusting entry was never made. The correcting entry will:

		debit Unearned Rent for $24,000; credit Rent Revenue for $24,000
		debit Rent Revenue for $24,000; credit Unearned Rent for $24,000
		not be necessary
		debit Rent Revenue for $16,000; credit Unearned Rent for $16,000
		debit Unearned Rent for $16,000; credit Rent Revenue for $16,000

Question 2) If you fail to accrue revenue,

		the income statement will be accurate, but the balance sheet will be understated
		assets will be overstated and net income will be overstated
		assets will be understated and net income will be understated
		assets will be understated and net income will be overstated
		assets will be overstated and net income will be understated
		the balance sheet will be accurate, but the income statement will be understated

Please answer both of these questions and don't skip any of these