Instructions On September 1, Northhampton Industries signed a six-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000 to the landlord on September 1. Assume that Northhampton prepares adjusting entries only four times a year: on March 31, June 30, September 30, and December 31. First Question Required: 1. Compute the rental cost for each full month. $ per month 1. Compute the rental cost for each full month. 2. Prepare the journal entry to record the payment of rent on September 1. 3. Prepare the adjusting entry on September 30. 4. Assume that the accountant prepares the adjusting entry on September 30 but forgets to record an adjusting entry on December 31. Will net income for the vear be understated or overstated? by what amount? Chart of Accounts ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable EXPENSES 500 Cost of Goods Sold 141 Inventory 153 Prepaid Rent 154 Office Supplies on Hand 174 Equipment 521 Salaries and Wages Expense 532 Utilities Expense 533 Insurance Expense 179 Accumulated Depreciation 534 Rent Expense LIABILITIES 537 Office Supplies Expense 541 Depreciation Expense 211 Accounts Payable 231 Salaries and Wages Payable 235 Notes Payable 261 Income Taxes Payable 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense EQUITY 311 Capital Stock 331 Retained Eamings General Journal 2. Prepare the journal entry with the impact on the financial statements to record the payment of rent on September 1. General Journal instructions PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 2 3. Prepare the adjusting entry with the impact on the financial statements on September 30. PAGE 1 GENERAL JOURNAL IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME Final Question 4. Assume that the accountant prepares the adjusting entry on September 30 but forgets to record an adjusting entry on December 31. Will net income for the year be understated or overstated? by what amount? by $