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 and unpaid, $9 , 000 . d. Income tax expense, $390 . Required: 1. Using the format shown in the demonstration case, indicate the accounting equation effects of each required adjustment. 2. Prepare the adjusting journal entries required at December 31 . 3. Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31 . 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