Question 9 4 pts Sparky, Inc. received cash in advance for 2-years rent from a client on September 1, 20x1 in the amount of $180,000. The original entry was recorded with a credit to Rent Revenue. No adjusting or correcting entries were ever made. How did this error affect the 20x2financial statements? Liabilities Net Assets 12/31/1 Net Income 20x1 Equity 12/311x1 Assets 12/31/X2 Liabilities 12/31/X2 Equity 12/31/X2 Income 20x2 12/31x1 Liabilities for 20x2 would be understated by $120,000 Net Income for 20x2 would be understated by $180,000 O Equity for 20x2 would be overstated by $60,000 Assets for 20x2 would be overstated by $120,000 Question 10 4 pts Desert, Inc. has year-end account balances as of December 31, 2020 of Sales Revenue $907.000; Interest Revenue $24,000: Cost of Goods Sold $593.000: Administrative Expenses $180,000; Income Tax Expense $31.000: Dividends $18,000. Unrealized Pension Liability Adjustments of $21.500 (dr) and a correction of an error in recording Depreciation Expense for 80 DK FE FYD F4 F5 12 F6 $ A ) % & 3 4 5 6 7 8 8 9 0 C