an accountant made the following adjustments at december 31, the end of the accounting period:\ne. salary…

an accountant made the following adjustments at december 31, the end of the accounting period:\ne. salary expense 7,600\nsalary payable 7,600\nf. income before income tax, $21,000. income tax rate is 35%.\naccounts debit credit\nf. income tax expense 7,350\nincome tax payable 7,350\nrequirement 2. suppose the adjustments were not made. calculate the overall overstatement or understatement of net income resulting from the omission of these adjustments.\nenter the amounts of either the overstatement or understatement of net income as a result of omitting these adjustments. (use parentheses or a minus sign when entering understatements.)\nnet income over (under) statement as a result of omission\ninsurance expense\ninterest revenue\nservice revenue\ndepreciation expense\nsalary expense\nincome tax expense\ntotal over (under) statement of net income

an accountant made the following adjustments at december 31, the end of the accounting period:\ne. salary expense 7,600\nsalary payable 7,600\nf. income before income tax, $21,000. income tax rate is 35%.\naccounts debit credit\nf. income tax expense 7,350\nincome tax payable 7,350\nrequirement 2. suppose the adjustments were not made. calculate the overall overstatement or understatement of net income resulting from the omission of these adjustments.\nenter the amounts of either the overstatement or understatement of net income as a result of omitting these adjustments. (use parentheses or a minus sign when entering understatements.)\nnet income over (under) statement as a result of omission\ninsurance expense\ninterest revenue\nservice revenue\ndepreciation expense\nsalary expense\nincome tax expense\ntotal over (under) statement of net income

Answer

Explanation:

Step1: Identify impact of omitting expenses

Omitting an expense adjustment understates total expenses, which causes net income to be overstated.

Step2: Identify impact of omitting revenues

Omitting a revenue adjustment understates total revenue, which causes net income to be understated.

Step3: Calculate Salary Expense impact

Omitting the $$7,600$ Salary Expense adjustment overstates net income by that amount. $$7,600$$

Step4: Calculate Income Tax Expense impact

Omitting the $$7,350$ Income Tax Expense adjustment overstates net income by that amount. $$7,350$$

Step5: Note missing data

The image does not show adjustments for Insurance, Interest, Service Revenue, or Depreciation. Assuming zero for missing data.

Step6: Calculate total impact

Sum the overstatements (positive) and understatements (negative) to find the total effect. $$7,600 + 7,350 = 14,950$$

Answer:

Account Net income over (under) statement
Insurance Expense 0
Interest Revenue 0
Service Revenue 0
Depreciation Expense 0
Salary Expense 7,600
Income Tax Expense 7,350
Total over (under) statement of net income 14,950