E4-16 through E4-18 (Algo) Recording Four Adjusting Journal Entries, Preparing an Adjusted Trial Balance, Reporting an Income Statement, Statement of Retained Earnings, Balance Sheet, Recording Closing Entries [LO 4-2, LO 4-3, LO 4-4, LO 4-5) [The following information applies to the questions displayed below.] Mint Cleaning Incorporated prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.) Credit Debit $ 52 14 9 108 Account Titles Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Insurance Expense salaries and Wageu Expense Supplies Expense Income Tax Expense Total SO 14 0 0 104 17 112 0 24 40 0 $ 247 $ 247 Other data not yet recorded at December 31 a. Insurance expired during the year. $7 b. Depreciation expense for the year. $6. c. Salaries and wages payable, $9 Hinramatov avnanen 11 Salaries and Wages Expense Supplies Expense Income Tax Expense Totals 24 40 0 $ 247 $ 247 7 Other data not yet recorded at December 31: a. Insurance expired during the year. $7. b. Depreciation expense for the year, $6. c. Salaries and wages payable, $9. d. Income tax expense, $11. ook nt E4-16 (Algo) Part 3 onces Required: 3. By whot amount would net income have been understated or overstated had the adjusting journal entries not been recorded? (Enter your answers in thousands of dollars.) Net income