X Company prepares monthly financial statements. It rents space in a large office complex. On May 1, it paid rent for May and June. The accountant made the proper entry on May 1 but failed to make the proper adjusting entry on May 31. What was the effect on the May financial statements? Total equities on May 31 were overstated; total expenses for May were understated. Total equities on May 31 were understated; total expenses for May were overstated. Total equities on May 31 were understated; total expenses for May were understated. Total equities on May 31 were correct; total expenses for May were overstated. Total equities on May 31 were overstated; total expenses for May were overstated. Total equities on May 31 were correct; total expenses for May were understated