8. The Schauer Company had the following adjustments as of December 31, 2023, at the end of the accounting period: A. The Schauer Company uses straight-line depreciation for its equipment. The cost of the equipment is $105,000 and the useful life is 5 years. The equipment was purchased on January 1, 2023 and has no residual value. B. Accrued interest of $10,000 on a document receivable will be received in January. C. EV November 1, 2023, Schauer Company paid $3,000 for six months of rent upfront. The rental period is from November 1, 2023 to April 30, 2024. D. On August 1, 2023, the company charged $24,000 upfront for a consulting contract, which will be earned evenly over the next 24 months. E. Employees are owed wages for 3 days of a 5-day workweek; weekly payroll is $30,000. F. The unadjusted supply account balance is $2,750. Based on a physical count, the cost of available supplies is $1,000. G. The company has incurred $1,000 interest expense to be paid in January. Required: 1. Count the adjustment seats. No explanation is required. 2. Assuming adjustments were not made, calculate the net overstatement or understatement this would have on net income. Would the company appear to be more or less profitable if adjustments were not made? Answer: Date Accounts/Description Debit Credit