The balance in the unearned rent account for Jackson Co. as of December 31 is $1,500. If Jackson Co. failed to journalize the adjusting entry of $500 of rent earned in December, the effect on the balance sheet and income statement for December would be a. liabilities understated $500; net income understated $500. b. assets understated $500; net income overstated $500. c. liabilities overstated $500; net income understated $500. d. liabilities overstated $1,000; net income overstated $1,000