Required information

Skip to question

[The following information applies to the questions displayed below.]

Mint Cleaning Incorporated prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.)

Account Titles	Debit	Credit
Cash	$ 57
Accounts Receivable	6
Prepaid Insurance	9
Equipment	118
Accumulated Depreciation		$ 0
Accounts Payable		6
Salaries and Wages Payable		0
Income Tax Payable		0
Common Stock		114
Retained Earnings		16
Sales Revenue		128
Insurance Expense	0
Salaries and Wages Expense	29
Supplies Expense	45
Income Tax Expense	0
Totals	$ 264	$ 264

Other data not yet recorded at December 31:

1. Insurance expired during the year, $8.
2. Depreciation expense for the year, $7.
3. Salaries and wages payable, $10.
4. Income tax expense, $12.

By what amount would net income have been understated or overstated had the adjusting journal entries not been recorded? (Enter your answers in thousands of dollars.)