E4-14 (Algo) Reporting an Adjusted Income Statement [LO 4-2, LO 4-4, LO 4-6) [The following information applies to the questions displayed below) 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 prepared the following preliminary income statement Income Statement, 2021 Rent Rovence $117,500 Expenses Salaries and Wages Expense $29, 200 Repairs and Maintenance Expense 13,700 Rent Expense 9,700 Utilities Expense 4,700 Travel Expense 3,700 Total Expenses 61,000 Income $ 56,500 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 pald. 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 1 Supplies costing $670 were used dudng 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 3-a. Did the adjustments have a significant overall effect on the company's net income? Yes 3-b. By what dollar amount did net income change as a result of the adjustments? Change in Net Income