Required Information

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

Other data not yet recorded at December $31$:

a$.$ Rent expired during the year, $$1,120.$

b$.$ Depreciation expense for the year, $$1,180.$

c$.$ Utilities used, unrecorded, and unpaid $$8,200.$

d$.$ Income tax expense, $$310.$

Required:

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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Net Income

Compute the amount of net income using $($a$)$ the preliminary $($unadjusted$)$ numbers and $($b$)$ the final $($adjusted$)$ numbers.

re$$ulize$.$

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?

Complete this question by entering your answers in the tabs below.

Net Income

Analysis

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