An accountant made the following adjustments at December 31, the end of the accounting period:a….

An accountant made the following adjustments at December 31, the end of the accounting period:a. Prepaid insurance, beginning, $300. Payments for insurance during the period, $900. Prepaid insurance, ending, $500.b. Interest revenue accrued, $1,300.c. Unearned service revenue, beginning, $1,200. Unearned service revenue, ending, $300.d. Depreciation, $4,400.e. Employees’ salaries owed for three days of a fi ve-day work week; weekly payroll, $17,000.f. Income before income tax, $26,000. Income tax rate is 25%.Requirements1. Journalize the adjusting entries.2. Suppose the adjustments were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.View Solution:
An accountant made the following adjustments at December 31 the 173277