North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Debit Credit Cash $12,000 Accounts Receivable 6,000 Prepaid Rent 2,400 Equipment 21,000 Accumulated Depreciation $ 1,000 Accounts Payable 1,000 Income Tax Payable 0 Common Stock 24,800 Retained Earnings 2,100 Sales Revenue 50,000 Salaries and Wages Expense 25,000 Utilities Expense 12,500 Rent Expense 0 Depreciation Expense Income Tax Expense 0 0 Totals $78,900 $78,900 Other data not yet recorded at December 31: a. Rent expired during the year, $1,200. b. Depreciation expense for the year, $1,000. c. Utilities used and unpaid, $9,000. d. Income tax expense, $390. Page 194 Required: 1. Using the format shown in the demonstration case, indicate the accounting equation effects of each required adjustment. 2. Prepare the adjusting journal entries required at December 31. 3. Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31. 4. Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount