i want only question #2 as showing in example down in full detial :

David Advertising Trial Balance December 31, 2014 Account Title Accounts Receivable Supplies $7.500 7,200 4,700 3.600 2,400 24,000 | Prepaid Rent Equipment Accumulated depreciation Equipment Accounts Payable Notes Payable Unearned Revenue Share Capital Retained Earnings Dividends Service Revenue Salaries Expense Utilities Expense $6,500 4,400 9,000 3,600 20,000 2,500 14,000 5 .200 300 $57,500 $57,500 4/1/2020 Adjustment (1) data: 1. The remaining supplies at December 31 are $2,000. 2. The insurance policy was purchased on December 1 for one year. 3. The expired rent for the month is $200. 4. The equipment is depreciated at the rate of $1,500 per month. 5. The notes payable represent a 3-month 10% note that was signed on December 1. 6. $2,600 of the unearned service revenue has been earned at the end of December. 7. Salaries of $2,000 are accrued at December 31. 8. Invoices representing $2,000 of services performed during December have not been recorded as of December 31. Instructions: 1. Journalize the adjusting entries for David Advertising at December 31. 2. If the adjustment were not made. Indicate the effect on net income, assets and liabilities. (Overstated, understated or N/A) entries 1 to 7 are not made. Indicate Liabilities equity 2. If the adjusting entries 1 to 7 are not mad the effect on net income, assets and liab Overstatement, Understatement or N/A). Entries Adjustment Revenues Expenses Net Shareholders Assets type Income Prepaid N/A Understated Overstated Overstated Overstated expenses Prepaid N/A Understated Overstated Overstated Overstated expenses Prepaid NA Understated Overstated Overstated Overstated expenses N/A N/A N/A