The following data at July 31, 2024, are given for RCO: 

a. Depreciation, $600. 

b. Prepaid rent expires, $200. 

c. Interest expense accrued, $700. 

d. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $8,000.

e. Unearned revenue earned, $1,000. 

f. Office supplies used, $150. 

Requirements

1. Journalize the adjusting entries needed on July 31, 2024. 

2. Suppose the adjustments made in Requirement 1 were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.