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jtsui1
Feb 8, 2012, 12:25 PM
At the end of January, the first month of the business year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Because of the error, which items will be incorrectly stated on:

A) the income statement for January

B) the balance sheet as of January 31

Also indicate whether the items in error will be overstated or understated.