An accountant made the following adjustments at December 31, the end of the accounting period:

a. Prepaid insurance, beginning, $450. Payments for insurance during the period, $1,600. Prepaid insurance, ending, $500.

b. Interest revenue accrued, $2,700.

c. Unearned service revenue, beginning, $1,400. Unearned service revenue, ending $300

d. Depreciation, $5,400.

e. Employees' salaries owed for three days of a five-day work week; weekly payroll, $25,000.

f. Income before income tax, $26,000. Income tax rate is $35%.

Requirements 1. Journalize the adjusting entries.

2. Suppose the adjustments were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.

Thank you!