1) In January 2012, Pasqual Enterprises purchased a two-year insurance policy costing $1,000. It debited Insurance Expense, and credited Cash. The company made no adjusting entries at the end of 2012. The entry on December 31, 2013, to correct this error, assuming Pasqual has not closed the books for 2013, is:

2) Assume that on January 1, 2012, Pasqual Enterprises purchased a machine for $10,000 that had an estimated useful life of five years. The accountant incorrectly expensed this machine in 2012, but discovered the error in 2013. If we assume that Pasqual uses straight line depreciation on this asset, the entry on December 31, 2013, to correct for this error, given that Pasqual has already closed the books for 2013: