Failure to record the expired amount of prepaid rent expense would not effect what?

We aren't here to just answer your homework questions for you. Recording expired insurance means taking the expired part out of the prepaid insurance account and putting it into the expense account. If you don't make that entry, what do you think that would do?

morgaine300 then what are you here for?? We're not here to hear you restate the question like we didn't here it the first time

Failure to record expired Prepaids effects the balance sheet and the income statement.

Your assets will be overstated.

Your expenses will be understated, which means your net income will be overstated.

With net income being overstated, your owners equity will be overstated as well.