The accountant for Super Office Supplies Ltd (SOS) is reviewing the year-end unadjusted trial balance and considering the following items of information. For each item, decide if an adjustment to the accounts is necessary. If it is, write a journal entry to make the adjustment.
1. A shipment of inventory that arrived late on the last day of the year was not recorded. The shipment cost $13 100, and was paid for routinely about three weeks later.
2. The accountant determined that a major sales order had been filled on the last day of the year, although it was not recorded until three days later. The order was for $7200, and the goods supplied had cost SOS $3300. The customer paid two weeks later.
3. In the last few days of the year, the company's share price on the Australian Stock Exchange fell about $0.40 per share. The company has 500000 shares issued.
4. There has been an error in calculating depreciation expense during the year. To correct the error, an additional expense of $14 500 would need to be recorded.
5. A review of the warranty liability indicated that the liability should be increased by $780.
6. At a board of directors meeting on the last day of the year, the company's president and other senior executives were awarded raises totalling $11 100 annually, to begin the next day.
7. The company bought 12 months' building insurance two months before the end of the year, at a cost of $2400, and debited the cost to insurance expense.
8. One of the cash receipts credited to sales revenue turned out to be a deposit of $400 made by a customer on an order that will be filled a week after the end of the year.