Somerville Corp purchases office supplies once a month and prepares monthly financial statements. The asset account Office Supplies on Hand has a balance of $1,450 on May 1. Purchases of supplies during May amount to $1,100. Supplies hand at May 31 amount to $920. Required: 1. Prepare the necessary adjusting entry on Somerville's books on May 31. 2. What will be the effect on net income for May if this entry is not recorded? Chart of Accounts ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 154 Office Supplies on Hand 174 Equipment 179 Accumulated Depreciation 521 Salaries and Wages Expense 532 Utilities Expense 533 Insurance Expense LIABILITIES 211 Accounts Payable 231 Salaries and Wages Payable 235 Notes Payable 261 Income Taxes Payable 534 Rent Expense 537 Office Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense EQUITY 311 Capital Stock 331 Retained Earnings 1. Prepare the necessary adjusting entry with the impact on the financial statements on Somerville's books on May 31. General Journal instructions PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 Adjusting Entries 2 3 Final Question 2. What will be the effect on net income for May if this entry is not recorded? Net income for the month of May would be by $ if this adjusting entry were not recognized because expenses would be