Question: The following data at July 31, 2014, are given for EBM. a. Depreciation, $ 500. b. Prepaid rent expires, $ 600. c. Interest expense accrued

The following data at July 31, 2014, are given for EBM.

a. Depreciation, $ 500.

b. Prepaid rent expires, $ 600.

c. Interest expense accrued $ 300.

d. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll, $ 13,000.

e. Unearned revenue earned $ 1,300.

f. Office supplies used $ 250.

Requirements

1. Journalize the adjusting entries needed on July 31, 2014.

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.

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