A Payment for Insurance on 1 June for $120 000,covering

A payment for insurance on 1 June for $120 000,covering the period 1 June 2015 to 31 May 2016,was recorded as a prepayment.No adjusting entry was made at 30 June 2016.As a result:

A) profit and total assets were understated by $10 000.
B) profit and total assets were understated by $110 000.
C) profit was overstated by $10 000 and assets understated by $10 000.
D) none of the answers provided.