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 in december, the effect on the balance sheet and income statement for december would be
a. liabilities overstated $1,000; net income overstated $1,000.
b. assets understated $500; net income overstated $500.
c. liabilities overstated $500; net income understated $500.
d. liabilities understated $500; net income understated $500