LO E3-33B. (Learning Objectives 1, 3: Journalizing adjusting entries and analyzing their effects on net income; comparing accrual and cash basis) An accountant made the following adjustments at December 31, the end of the accounting period: a. Prepaid insurance, beginning, 800. Payments for insurance during the period, 2,500. Prepaid insurance, ending, 1.400. b. Interest revenue accrued, 1,200. c. Unearned service revenue, beginning. 1,500. Unearned service revenue, ending, 600. d. Depreciation, 4,700. e. Employees' salaries owed for three days of a five-day work week; weekly payroll, 24.000 1. Income before income tax, 21,000. Income tax rate is 25%. Requirements 1. Journalize the adjusting entries. 2. Suppose the adjustments were not made. Compute the overall overstatement or understate- ment of net income as a result of the omission of these adjustments