Required information E4-15 (Algo) Recording Adjusting Entries and Preparing an Adjusted Trial Balance (LO 4-2, 4-3] [The following information applies to the questions displayed below.) North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Utilities Expense Rent Expense Depreciation Expense Income Tax Expense Totals Other data not yet recorded at December 31: a. Rent expired during the year, $1,270. b. Depreciation expense for the year, $1,070. c. Utilities used and unpaid, $9,700. d. Income tax expense, $460. Debit $ 12,700 Credit 6,700 2,540 21,700 $ 1,070 1,070 0 25,700 13,200 e 25,500 2,800 52,100 $ 82,540 $ 82,540 Required: 4. Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? Complete this question by entering your answers in the tabs below. Net Income Analysis Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. a. Preliminary Net Income b. Adjusted Net Income Net income Analysis > . Compute the amount of net income using (a) the preliminary (unadjusted) numbers and (b) the final (adjusted) numbers. Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? Complete this question by entering your answers in the tabs below. Net Income Analysis Had the adjusting entries not been recorded, would net income have been overstated or understated, and by what amount? Net income by