Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company bookkeeper prepated the following preliminary income statement: You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $380 were not recorded or paid. b. The $470 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $23,700 for 2021 was not recorded. d. Interest of $570 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $4,700 of revenue to be earned in January 2022. f. Supplies costing $670 were used during 2021 , but this has not yet been recorded. 9 . The income tax expense for 2021 is $7,700, but it won't actually be paid until 2022 . E4-14 (Algo) Part 1 Required: 1. Prepare adjusting Journal entry for each item (a) through (g) should be recorded at December 31,2021 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2. Prepare, in proper form, an adjusted income statement for 2021. a. Wages for the last three days of December amounting to $380 were not recorde b. The $470 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $23,700 for 2021 was not recorded. d. Interest of $570 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $4,700 of revenue to be earned in Januan f. Supplies costing $670 were used during 2021 , but this has not yet been recorde g. The income tax expense for 2021 is $7,700, but it won't actually be paid until 202 E4-14 (Algo) Part 3 3-a. Did the adjustments have a significant overall effect on the company's net income? Yes No 3-b. By what dollar amount did net income change as a result of the adjustments? Dyer, Incorporated, completed its first year of operations on December 31, 2021. Because this is the end of the annual accounting period, the company bookkeeper prepated the following preliminary income statement: You are an independent CPA hired by the company to audit the firm's accounting systems and financial statements. In your audit, you developed additional data as follows: a. Wages for the last three days of December amounting to $380 were not recorded or paid. b. The $470 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $23,700 for 2021 was not recorded. d. Interest of $570 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $4,700 of revenue to be earned in January 2022. f. Supplies costing $670 were used during 2021 , but this has not yet been recorded. 9 . The income tax expense for 2021 is $7,700, but it won't actually be paid until 2022 . E4-14 (Algo) Part 1 Required: 1. Prepare adjusting Journal entry for each item (a) through (g) should be recorded at December 31,2021 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2. Prepare, in proper form, an adjusted income statement for 2021. a. Wages for the last three days of December amounting to $380 were not recorde b. The $470 telephone bill for December 2021 has not been recorded or paid. c. Depreciation of equipment amounting to $23,700 for 2021 was not recorded. d. Interest of $570 was not recorded on the notes payable by Dyer, Incorporated. e. The Rental Revenue account includes $4,700 of revenue to be earned in Januan f. Supplies costing $670 were used during 2021 , but this has not yet been recorde g. The income tax expense for 2021 is $7,700, but it won't actually be paid until 202 E4-14 (Algo) Part 3 3-a. Did the adjustments have a significant overall effect on the company's net income? Yes No 3-b. By what dollar amount did net income change as a result of the adjustments