PacRim Careers provides training to individuals who pay tuition directly to the business. The business also offers extension training to groups in off-site locations. Additional information available at the December 31, 2020, year-end follows: An analysis of the companys policies shows that $1,200 of insurance coverage has expired. An inventory shows that teaching supplies costing $400 are on hand at the end of the year. The estimated annual depreciation on the equipment is $7,375 The estimated annual depreciation on the professional library is $4,275. The school offers off-campus services for specific employers. On November 1, the company agreed to do a special six-month course for a client. The contract calls for a monthly fee of $800, and the client paid the first five months' revenue in advance. When the cash was received, the Unearned Extension Revenue account was credited. On October 15, the school agreed to teach a four-month class for an individual for $1,150 tuition per month payable at the end of the class. The services to date have been provided as agreed, but no payment has been received. The school's two employees are paid weekly. As of the end of the year, three days' wages have accrued at the rate of $120 per day for each employee. The balance in the Prepaid Rent account represents the rent for three months: December, January, and February. PACRIM CAREERS Trial Balances December 31, 2020 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Dr. Cr. Dr. Cr. Dr. Cr. Cash $ 17,500 Accounts receivable 0 Teaching supplies 6,000 Prepaid insurance 1,350 Prepaid rent 6,450 Professional library 57,000 Accumulated depreciation, professional library $ 17,100 Equipment 88,500 Accumulated depreciation, equipment 29,500 Accounts payable 2,250 Salaries payable 0 Unearned extension revenue 5,800 Karoo Ashevak, capital 224,000 Karoo Ashevak, withdrawals 89,500 Tuition revenue 184,350 Extension revenue 67,500 Depreciation expense, equipment 0 Depreciation expense, professional library 0 Salaries expense 201,000 Insurance expense 0 Rent expense 39,000 Teaching supplies expense 0 Advertising expense 13,500 Utilities expense 10,700 Totals $ 530,500 $ 530,500 Required: 1. Prepare the necessary annual adjusting journal entries at December 31, 2020, based on (a) to (h) above. Analysis Component: 2. Complete the adjusted trial balance using the information in (a) through (h) above. 3. If the adjustments were not recorded, calculate the overstate or understate of income