A company receives a payment of $10000 on 1 December, for rent on a property for December and January. On receipt, they correctly record it as cash and unearned revenue. If at 31 December, their year-end, they failed to make an adjustment entry related to this payment, what is the effect on the financial statements for the year（）
A. Assets are overstated by $5000 and liabilities are overstated by $5000.
B. Assets are overstated by $5000 and owner’s equity is overstated by $5000.
C. Liabilities are overstated by $5000 and owner’s equity is understated by $5000.