An accountant made the following adjustment at December 31, the end of the accounting period:
a) Prepaid Insurance, beginning, $500. Payment for insurance during the period, $1500. Prepaid insurance, ending, $1000.
b) Interest revenue accrued, $1100
c) Unearned service revenue, beginning, $1200. Unearned service revenue, ending $400.
d) Depreciation, $4900
e) Employee's salaries owned for 3 days of a 5 day work week; weekly payroll, $14000.
f) Income before income tax, $22000. Income tax rate is 25%.
1) Journalize the adjusting entries.
2) suppose the adjustment were not made. compute the overall overstatement ot understatement of the net income as a result of the omission of these adjustment.