1. B Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows:

(1.) Merchandise costing $2,000 was sold to a customer for $6,000 on December 31, 2020, but it was recorded as a sale on January 2, 2021. The merchandise was properly excluded from the 2020 ending inventory. Assume the periodic inventory system is used.

(2.) A machine with a five-year life was purchased on January 1, 2020. The machine cost $60,000 and has no expected salvage value. No depreciation was taken in 2020 or 2021. Assume the straight-line method for depreciation.

Required:

Prepare appropriate journal entries (assume the 2021 books have not been closed). Ignore income taxes.