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At the end of the financial year ending 30 June 2020, the following adjustments are required.

Balance Day Adjustments

1. Depreciation on office furniture for the year ending 30 June 2020 amounts to $4,000.
2. Interest of $2,500 earned on the investments held was accrued, but has not been received.
3. Amount of $500 in the Unearned Service Revenue account is now earned.
4. Accrued wages at 30 June 2020 amounting to $3,000 were not included.

Required:

(a) Prepare all necessary adjusting entries including showing all relevant workings.

(b) Explain the TOTAL FINAL impacts on the assets, liabilities and profit figures in the financial statements after taking into account ALL the adjusting entries in part (a). Are these figures overstated or understated if the adjusting entries are not accounted for? (Show all workings).

(c) Prepare all relevant reversing entry.