North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Cash Accounts Receivable Debit $ 12,400 Credit 6,400 2,480 21,400 $ 1,040 1,040 Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense): Rent Expense Depreciation Expense Income Tax Expense Totals Other data not yet recorded at December 31: a. Rent expired during the year, $1,240. b. Depreciation expense for the year, $1,040, c. Utilities used and unpaid, $9,400. d. Income tax expense, $430. 25,400 12,900 $ 80,980 0 25,200 2,500 51,200 0 0 $ 80,980 1. Indicate the accounting equation effects of each required adjustment. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction a b a d Assets Liabilities Stockholders' Equity a. Rent expired during the year, $1,240. b. Depreciation expense for the year, $1,040. c. Utilities used and unpaid, $9,400. d. Income tax expense, $430. Required: 2. Prepare the adjusting journal entries required at December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the entry for the rent expired during the year, $1,240. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry 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? Complete this question by entering your answers in the tabs below. Net Income Analysis Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. a. Preliminary Net Income b. Adjusted Net Income Net Income Analysis > 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? Complete this question by entering your answers in the tabs below. Net Income Analysis Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? Net income