Following are the unadjusted and adjusted trial balances for Power Corp. on May 31:

Required
1. Reconstruct the adjusting entries that were made on Power's books at the end of May.
2. By how much would Power's net income for May have been overstated or understated (indicate which) if these adjusting entries had not been recorded?

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Unadjusted Adjusted Trial Balance Trial Balance Debit Credit Debit Credit $ 3,160 9,650 160 2,200 9,000 Cash Accounts Receivable Supplies on Hand Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Capital Stock Retained Earnings Service Revenue Promotions Expense Wage Expense 3,160 7,300 2.400 9,000 $ 2,800 3,200 2,600 5,000 8,990 8,990 6,170 2,050 1,250 2,050 2,350 Unadjusted Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Wages Payable Supplies Expense Depreciation Expense Rent Expense 1,100 240 200 $29,410 Totals $25,560 $25,560 $29,410