ACCT& 201 Project The accountant has made the following journal entries to record the following transactions. There are numerous errors. You will need to find the journal entries that are incorrect, write the journal entry correctly and explain how the accountant's errors would affect the financial statements. Journal paper and a space to write the effects of the accountant's errors has been provided below. The number of provided space for journal entries does NOT indicate how many errors are present. Please download this Word document, do the assignment and submit it to me through the module titled "Project". I recommend looking at each dated transaction and compare it to the journal entry made to decide if each journal entry is correct or incorrect. For example, if the story stated that revenue was $57,500, but the accountant recorded the revenue as $75,500, you will need to write the correct journal entry, then explain that the error would overstate the revenue on the Income Statement and cause Net Income to be too high. The wrong Net Income would be included on the Statement od Stockholders' Equity resulting in Retained Earnings being too high. Retained earnings is included on the Balance Sheet and therefore, overstate Equity and assets. Dec. 1 2020, started business by issuing 20,000 shares of common stock for $90,000. Dec. 1 Rented a building for three years at $800 per month and paid six months' rent in advance. Dec. 1 Purchased equipment for $25,440 with a 2-year loan at 4% interest (loan and interest will be due at the end of the 2-year loan agreement) The equipment has a useful life of 10 years and a residual value of $1,800. Straight line depreciation will be used. Dec. 2 Purchased merchandise inventory for $30,000 on account (500 units @ $60 per unit) Dec. 8 Purchased $1,800 of supplies on account. Dec. 12 Sold inventory to customers for $11,865 cash. (113 x $105) Dec. 14 Sold inventory to customers for $1,365 on account. (13 x 105) Dec. 14 Purchased merchandise Inventory for $10,126 (166 units @ $61 per unit) on account Dec. 15 Paid employees' salaries, $5,200. Dec. 15 Paid for supplies purchased on Dec. 8 Dec. 18 Sold inventory to customers for $7,665 in cash and $12,180 on account Dec. 20 Paid $1,800 for current advertising in a local newspaper. Dec. 22 Received $3,045 in cash in advance from customer, inventory will be delivered to the customer next month Dec. 23 Paid full amount for merchandise inventory purchased on Dec. 2 Dec. 25 Received $3,675 from customers paying on their accounts Dec. 31 Received September utility bill of $1,300, will pay it next month. Dec. 31 Owes employee salaries of $5,200 that will be paid Oct. 1 Dec. 31 There are $905 supplies on hand 1. Bad debt is estimated to be 6% of total A/R 2. The company uses LIFO to cost its inventory The accountants calculations for total COGS and ending inventory Purchase 500 x $60 12/12 Sold 113 x 60 = $6,780 12/14 Sold 13 x 60 = $780