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North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December $31.$

Other data not yet recorded at December $31$

a$.$ Rent expired during the year, $$1,200.$

b$.$ Depreciation expense for the year, $$1,000.$

c$.$ Utilities used, unrecorded, and unpaid $$9,000.$

d$.$ Income tax expense, $$390.$

$4.$ 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?

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Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount?

Net income

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