22 Feb Prepaid Rent Quarterly AdjustmentsOn September 1,
Prepaid Rent Quarterly AdjustmentsOn September 1, Northhampton Industries signed a six-month lease for office space, which iseffective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000to the landlord on September 1. Assume that Northhampton prepares adjusting entries only fourtimes a year: on March 31, June 30, September 30, and December 31.Required1. Compute the rental cost for each full month.2. Prepare the journal entry to record the payment of rent on September 1.3. Prepare the adjusting entry on September 30.4. Assume that the accountant prepares the adjusting entry on September 30 but forgets to recordan adjusting entry on December 31. Will net income for the year be understated or overstated?by what amount?