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