An audit of the books of George Limited was conducted for the year ending December 31, 2021.

In examining the books, the auditor found that certain items had been overlooked or incorrectly recorded.

These items are:

1. During 2021, the company incorrectly recorded depreciated on equipment for $50,000. The correct number should have been $5,000 in depreciation. 
2. The company failed to accrue wages payable of $13,000 at the end of 2020. It was expensed and paid at the beginning of 2021.
3. The company purchased a copyright in early 2016 for $80,000. The bookkeeper has not amortized the copyright. The useful life at purchase was 10 years.

 

4. A $24,000 insurance premium paid on January 1, 2019, for a policy that expires on December 31, 2022, was all charged to insurance expense.

 

5. At December 31, 2021, the company decided to change the depreciation method on its office equipment from double-declining balance to straightiline. The equipment had an original cost of $60,000 when purchased on January 1, 2020. It has a 5-year useful life and no salvage value. Depreciation expense recorded prior to 2021 under the double-declining balance method was $24,000. The company has already recorded 2021 depreciation expense of $14,400 using the double-declining balance method.

 

Instructions:

Prepare the journal entries necessary in 2021 to correct the books, assuming the books have not been closed. Ignore all tax effects.