JDM Inc. made the following prepayments for expense items during the year:

Prepaid building rent for $1$ year on April $1$ by paying $$7,656.$ Prepaid rent was debited for the amount paid.

Prepaid $12$ months' insurance on October $1$ by paying $$3,024.$ Prepaid insurance was debited.

Purchased $$5,590$ of office supplies on October $15,$ debiting supplies for the full amount. There were no office supplies on hand as of October $15.$ Office supplies costing $$1,085$ remain unused at December $31.$

Paid $$576$ for a $12-$month service contract for repairs and maintenance on a computer. The contract begins November $1.$ The full amount of the payment was debited to prepaid repairs and maintenance.

Required:

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$1.$ Prepare journal entries to record the payment of cash for each transaction. If an amount box does not require an entry, leave it blank.

Apr. $1$

Oct. $1$

Oct. $15$

Nov. $1$

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$2.$ Prepare adjusting entries for the prepayments at December $31.$ If an amount box does not require an entry, leave it blank.

a$.$

Dec. $31$

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b$.$

Dec. $31$

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c$.$

Dec. $31$

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d$.$

Dec. $31$

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$3.$ Conceptual Connection: For all of the above items, assume that the accountant failed to make the adjusting entries. What would be the effect on net income?

by $fill in the blank $7$cc$853$fd$6$fe$0044\_2$