Answer Adjustments AdamsConstructionCo. Journalentries DateAccount 1Suppliesexpense Supplies 2Insuranceexpense PrepaidInsurance 3 Depreciationexpense-Equipment AccumulatedDepreciation-Equipment Debit $5,700 $3,900 $8,500 4Wagesexpense $1,600 5Rentexpense $ WagesPayable RentPayable Closingentries 200 6Constructionfeesearned $134,000 7IncomeSummary $93,010 IncomeSummary Depreciationexpense-Equipment Credit $1,600 $ 200 $ 134,000 8,500 Insuranceexpense Rentexpense Suppliesexpense $ Utilitiesexpense $40,990 S.Adams,Capital 30,000 S.Adams,Withdrawals 3,900 $4,000 IncomeSummary S.Adams,Capital 2,640 $13,400 $ 5,700 $ 4,600 $ 2,810 Repairsexpense 9 $8,500 $47,460 PropertyTaxesexpnese 8900-3200 $3,900 Wagesexpense Interestexpense 8 $5,700 Calculation $40,990 $30,000 Analyzethefollowingcorrectionimpact a)Assumethattheadjustmentforsuppliesusedconsistedofacredittosuppliesand adebittosuppliesExpensefor$3200,whenthecorrectedamountwas$5,700. Incomestatement Suppliesexpense Totalexpenses NetIncome Balancesheet Supplies TotalCurrentAssets TotalAssets Owners'equity S.Adams,Capital Understated$2,5005700-3200 Understated$ Overstated 2,500 $2,500 Overstated $2,500 Overstated $ 2,500 Overstated $2,500 Overstated$2,500