Steady Grow Financial planners provides investment advice to customers for a fee. The business has been registered for goods and services tax (GST). The GST rate is 10%. On 30 June 2021, it completed its first year of operations. Some of the ledger account balances of the business, before any year-end adjustments, are given below:

	Dr	Cr
Prepaid Advertising	1,200
Service Fees Revenue		430,000
Stationery	1,800
Computer Database Expenses	4,200
Salary expenses	35,300
Telephone Expenses	2,100
Electricity Expenses	4,300
Unearned Service Fees Revenue		12,500
Motor Vehicle	28,000

No adjusting entries have been made to these accounts during the year. An analysis of the business records reveals the following:

1. The balance in prepaid advertising represents the amount paid for an advertisement in an investment magazine for 1 year commencing 1 October 2020. The agreement with the publisher stipulates the same amount of advertising space each month.

2. The balance in the unearned service fees revenue account includes $1,500 received in May for consultation services conducted in June 2021.
3. The electricity expense ledger balance does not include the amount for June 2021. The electricity bill for June $680 (plus GST) will be paid in the second week of July 2021.

4. The motor vehicle was purchased on 1 January 2021. The vehicle needs to be depreciated at 20% per annum at cost.

5. Stationery on hand at 30 June 2021 totalled $400.

6. An invoice representing $8000 (plus GST) of service performed for Bulwara Ltd during June 2021 has not been recorded as of 30 June 2021. Bulwara Ltd will settle the bill by 5^th of July 2021.

REQUIRED

1. Record the necessary adjusting entries for the year ended on 30 June 2021. (Narrations are not required).

2. Assume the accountant of Steady Grow Financial planners omitted the adjustment entries for the following two additional pieces of information provided above:

1. Stationery on hand at 30 June 2021 totalled $400.
2. The balance in the unearned service fees revenue account includes $1,500 received in May for consultation services conducted in June 2021.

What effects will the omission of the above two adjustment entries have on the income statement and the balance sheet as 30 June 2021?