An Accountant made the following adjustment at December 31, the end of the accounting period:
a. Prepaid insurance , beginning , $600. Payments for insurance during the period $2,400. Prepaid insurance ending $700
b. Interest revenue accrued $2,600
c. Unearned service revenue beginning $1,700. Unearned service revenue, ending $500
d. Depreciation, $5,800
e. Employee's salaries owed for two days of a five day work week; weekly payroll, $20,000
f. Income before income tax $21,000. Income tax rate is 35%
Requirements
1. Journalized the adjusting entries
2. Suppose the adjustment were not made. Compute the overall overstatement or understatement of net income as a result of the omission of their adjustments.