need help with Cactus Companys net income overstated by?

Cactus Company's annual accounting year ends on June 30. Assume it is now June 30 and all of the entries except the following adjusting journal entries have been made a. The company earned service revenue of $1,400 on a special job that was completed June 29. Collection will be made during Ju no entry has been recorded. b. On March 31, Cactus paid a six-month premium for property insurance in the amount of $3,080 for coverage starting on that da Cash was credited and Prepaid Insurance was debited for this amount. c At June 30, wages of $840 were earned by employees but not yet paid. The employees will be paid on the next payroll date, w is July 15. d. On June 1, Cactus collected two months' revenue of $390. At that date, Cactus debited Cash and credited Deferred Revenue fom $390. One half of it has now been earned but not yet recorded. e. Depreciation of $1,440 must be recognized on equipment purchased on July 1 of the previous year. # Cash of $3,840 was collected on May 1 for services to be rendered evenly over the next year beginning on May 1. Deferred Revenue was credited when the cash was received. Two months of this performance obligation have now been fulfilled but not yu recorded g. The company owes interest of $540 on a bank loan taken out on February 1. The interest will be paid when the loan is repaid ne year on January 31 n. The income after all adjustments except Income taxes was $36,000. 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 transaction at June 30. 2. If adjustments were not made each period, the financial results could be materially misstated. Determine the amount by which Cactus Company's net income would have been understated, or overstated, had the adjustments in requirement 1 not been made Journal Entry Required" in the first account field.) Transaction General Journal Debit Credit a. Accounts Receivable Service Revenue 1,400 1,400 b. Insurance Expense Prepaid Insurance 1,540 1,540 C. Salaries and Wages Expense Salaries and Wages Payable 840 840 d. Deferred Revenue Service Revenue 195 195 e > Depreciation Expense Accumulated Depreciation 1,440 1,440 > Deferred Revenue Service Revenue 640 640 9 Interest Expense Interest Payable 540 O 540 h. Income Tax Expense Income Tax Payable 9,000 DI 9,000 REGIO Required 2 >