During the adjusting process two transactions were neglected or omitted. The first is for unearned rent revenue of which $540 was earned during the period, the second was for accrued interest payable of which $225 is owed for the period. As a result of these omissions (A) assets are overstated by $540. (B) These omissions would not affect the financial statements; the financial statements will be correct. (C) liabilities are overstated by $315. (D) revenue is overstated by $765. (E) net income is overstated by $225.
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