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. If you fail to make the correcting entry

		liabilities will be understated and net income will be understated
		liabilities will be overstated and net income will be overstated
		the financial statements will be accurate because an adjusting entry was not necessary
		liabilities will be understated and net income will be overstated
		liabilities will be overstated and net income will be understated

Question 2) 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 revenue. On December 31, 20X3, you discover that an adjusting entry was never made. The correcting entry will:

		not be necessary
		debit Rent Revenue for $24,000; credit Unearned Rent for $24,000
		debit Unearned Rent for $24,000; credit Rent Revenue for $24,000
		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 3) Your employer has a MondayFriday workweek; the 5-day payroll totals $20,000 each week. In 20X1, December 31 is a Thursday. Just before closing the books, you realize that no adjusting entry was made. If no correcting entry is recorded,

		liabilities will be understated and net income will be overstated
		liabilities will be overstated and net income will be overstated
		everything will be fine. The original adjusting entry was unnecessary and no correction needs to be made.
		liabilities will be overstated and net income will be understated
		liabilities will be understated and net income will be understated

Please answer all of these and make sure these are correct,