12) Below are five independent and unrelated errors. Prepare the journal entries each company should record in 2021 to correct the errors (assume the 2021 books have not been closed). Ignore income taxes.

Record the necessary entries ONLY. Write None if no entry is required.

a) Major improvements to Angelica's manufacturing plant costing $25,000 were charged to expense on January 1, 2020 and should have been capitalized. Consequently, annual depreciation expense of $2,500 was omitted from the 2020 and 2021 financial statements.

b) Wages of $7,000 incurred in 2020 but not paid until 2021 were recorded as an expense in 2021 instead of 2020.

c) At the end of 2020, Denver Corporation failed to accrue interest of $5,000 on a note payable. At the beginning of 2021, when the company paid the cash, it was recorded as interest expense.

d) On December 12, 2020, an investment costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment account (trading security).

e) On December 31, 2021, merchandise inventory was overstated by $25,000 due to a mistake in the physical count using the periodic inventory system.