PLEASE EXPLAIN THE SOLUTION IN DETAIL

An accountant made the following adjustments at December 31, the end of the accounting period:

a. Prepaid insurance, beginning, $700. Payments for insurance during the period, $2,100. Prepaid insurance, ending, $800.

b. Interest revenue accrued, $900.

c. Unearned service revenue, beginning, $800. Unearned service revenue, ending, $300.

d. Depreciation, $6,200.

e. Employees' salaries owed for three days of a five-day work week; weekly payroll, $9,000.

f. Income before income tax expense, $20,000. Income tax rate is 25%.

Requirements

1. Journalize the adjusting entries.

2. If the accountant was biased to report a better operating performance for the period than actually occurred, which of the preceding adjustments would he have not made and why? Would it have been ethical for him