Account balances from the general ledger of Wyatt Inc. on December 31, 2021, are shown on...

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Account balances from the general ledger of Wyatt Inc. on December 31, 2021, are shown on the tab labeled "Trial Balance." Wyatt's controller is in the process of preparing year-end financial statements and has come across information that needs to be considered during the preparation process. The amounts listed on the Trial Balance are correct, 8 except for the items in Notes 1-4 below. These items have either not been recorded through an adjusting journal entry or were recorded incorrectly during the year. 9 10 Note 1: 1 The sales revenue total includes a $120,000 advance payment received from a customer on 11/01/21 for goods to be shipped from November 2021 through October 2022. An equal amount of goods will be shipped on the 15th of each of the months November through October. 13 Note 21 14 15 On May 1, 2021, the company purchased a piece of equipment for $1,000,000 with a salvage value of $250,000 and a useful life of 25 years. In the original depreciation calculation, the accountant incorrectly used a useful life of 30 years when it was recorded at year-end. Assume straight-line depreciation is used. Also, assume that depreciation expense for other assets was recorded correctly. 16 Note 3: 17 10 On March 1, 2021. Wyatt paid $72,000 in advance to receive insurance coverage for 3 years (starting on March 1, 2021). The accountant recorded the entire payment as insurance expense on that day. 19 Note 4: 20 Wyatt borrowed $700,000 from HHR Bank on August 1, 2021. The interest rate is 4.5% and interest payments are due every August 1st. The note was recorded in the general ledger upon origination, but the accountant failed to accrue interest. Interest was recorded properly for all other outstanding notes payable 21 22 INSTRUCTIONS Account balances from the general ledger of Wyatt Inc. on December 31, 2021, are shown on the tab labeled "Trial Balance." Wyatt's controller is in the process of preparing year-end financial statements and has come across information that needs to be considered during the preparation process. The amounts listed on the Trial Balance are correct, 8 except for the items in Notes 1-4 below. These items have either not been recorded through an adjusting journal entry or were recorded incorrectly during the year. 9 10 Note 1: 1 The sales revenue total includes a $120,000 advance payment received from a customer on 11/01/21 for goods to be shipped from November 2021 through October 2022. An equal amount of goods will be shipped on the 15th of each of the months November through October. 13 Note 21 14 15 On May 1, 2021, the company purchased a piece of equipment for $1,000,000 with a salvage value of $250,000 and a useful life of 25 years. In the original depreciation calculation, the accountant incorrectly used a useful life of 30 years when it was recorded at year-end. Assume straight-line depreciation is used. Also, assume that depreciation expense for other assets was recorded correctly. 16 Note 3: 17 10 On March 1, 2021. Wyatt paid $72,000 in advance to receive insurance coverage for 3 years (starting on March 1, 2021). The accountant recorded the entire payment as insurance expense on that day. 19 Note 4: 20 Wyatt borrowed $700,000 from HHR Bank on August 1, 2021. The interest rate is 4.5% and interest payments are due every August 1st. The note was recorded in the general ledger upon origination, but the accountant failed to accrue interest. Interest was recorded properly for all other outstanding notes payable 21 22 INSTRUCTIONS