Brokeback Towing Company is at the end of its accounting year, December 31, 2021. The following data that must be considered were developed from the company's records and related documents a. On July 1, 2021, a two-year insurance premium on equipment in the amount of $816 was paid and debited in full to Prepaid Insurance on that date Coverage began on July 1 D. At the end of 2021, the unadjusted balance in the Supplies account was $1,000. A physical count of supplies on December 31, 2021 indicated supplies costing $390 were stilt on hand. c On December 31, 2021, YY's Garage completed repairs on one of Brokeback's trucks at a cost of $890. The amount is not yet recorded. It will be paid during January 2022 a on December 31, 2021, the company completed a contract for an out of state company for $8,400 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction e On July 1, 2021, the company purchased a new hauling van Depreciation for July-December 2021, estimated to total $3,200, has not been recorded As of December 31, the company owes interest of $590 on a bank loan taken out on October 1, 2021 The Interest will be paid when the loan is repaid on September 30, 2022 No Interest has been recorded yet 9 Assume the income after the preceding adjustments but before income taxes was $39,000 The company's federal income tax rate IS 25% Compute and record income tax expense Required: 1. Give the adjusting journal entry required for each item at December 31, 2021 2. If adjustments were not made each period, the financial results could be materially misstated Determine the amount by which Brokeback's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which Brokeback's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made. Brokeback's net income overstated by 36.784