1. Make the 12/31/2020 correcting entries. Use three journal entries (one for rent, one for wages, and one for supplies). Show calculations below each entry. Q1. Lowell Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $29,000 net income for 2019 and $37,000 net income for 2020. Further examination of the records reveals that the following items were handled improperly. Select from the following accounts when preparing your entries. Unearned Rent Rent Revenue Wages Payable Wages Expense Supplies Supplies Expense RE (1/1/2020) 1. Rent was received from a tenant in December 2019. The amount, $1,000, was recorded as revenue at that time even though the rental pertained to 2020. a Correcting entry for rent: Certain wages payable on December 31 have been consistently omitted from the records of that date and have been entered as expenses when paid in the following year. The amounts of the accruals recorded in this manner were: 31-Dec-18 31-Dec-19 31-Dec-20 1,100 1,200 940 3. Invoices for certain supplies purchased have been charged to expense accounts when received. Inventories of those supplies on hand at the end of each year have been ignored, and no entry has been made for them. 31-Dec-18 1,300 31-Dec-19 940 31-Dec-20 1,420 b Correcting entry for wages: Below is a schedule showing the derivation of corrected net income for the years 2019 and 2020 2019 $29,000 (1000) 1100 (1200) $37,000 1000 C Correcting entry for supplies: 1200 Net income, as reported Rent received in 2019, earned in 2020 Wages not accrued, 12/31/18 Wages not accrued, 12/31/19 Wages not accrued, 12/31/20 Supplies cost not deferred, 12/31/18 Supplies cost not deferred, 12/31/19 Supplies cost not deferred, 12/31/20 Corrected net income (940) (1300) 940 (940) 1420 $38.740 $27.540