16 QS 3-16 Determining effects of adjusting entries LO P1 In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record points $4,800 of insurance coverage that had expired (this $4,800 cost had been initially debited to the Prepaid Insurance account) $2.800 of accrued salaries expense. eBook As a result of these oversights, the financial statements for the reporting period will: Hint Print Multiple Choice References Understate assets by $4,800 Understate expenses by $7,600 Understate net income by $2,800. Overstate liabilities by $2,800