Response to the following problem:
At the end of January, the first month of the business year, the usual adjustment transferring rent earned of $29,500 to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on
(a) the income statement for January and
(b) the balance sheet as of January 31.
Also indicate whether the items in error will be overstated or understated.