Please answer both parts with as much details as you can, thanks.

Accounting Cycle and Adjusting Entries Use the following unadjusted trial balance to provide appropriate adjustments and classification adjustments. Additional Information: Accounts were previously adjusted on 12/31/16. The prepaid insurance contract will expire 4/1/18. The equipment has an estimated useful life of 30 years to the company and no salvage value. The company issued the note on 9/1/17, the note payable bears a 7% stated rate and was issued at par. Interest is payable on January 2 of each year. Assume a 40% tax rate. Required: Provide the necessary adjusting entries at 12/31/17. A. Ram Co. received exist1, 200,000 for two-years of a prepaid work contract. Ram will perform services for its client evenly over the course of two years. On 9/1/17, Ram signed the contract and received the entire cash amount. Ram recorded the following journal entry for the transaction: Ram uses an accrual system of accounting but did not make any adjustment at year end from this entry. Required: Determine the Overstatement or Understatement in each of the following if Ram fails to make an adjusting entry for either 2017 or 2018