Response to the following :
Suppose the adjustments required in problem were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.
Problem:
Journalize the adjusting entries for the following adjustments at January 31, end of the accounting period.
a. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $10,000.
b. Unearned service revenue earned, $500.
c. Depreciation, $3,000.
d. Prepaid rent expired, $300.
e. Interest revenue accrued, $3,800.