1. Journalize the adjusting entries. 72 2. Suppose the adjustments were not made. Calculate the overall overstatement or understatement of net income resulting from the omission of these adjustments. a. Prepaid insurance, beginning, $500. Payments for insurance during the period, $2,000. Prepaid insurance, ending, $400. b. Interest revenue accrued, $2,500. c. Unearned service revenue, beginning, $1,700. Unearned service revenue, ending, $300 d. Depreciation on building, $5,600. e. Employees' salaries owed for two days of a five-day work week; weekly payroll, $19,000.