Below are three independent and unrelated errors. a. On December 31, 2017, Wolfe-Bache Corporation failed to accrue office supplies expense of $2,100. In January 2018, when it received the bill from its supplier, Wolfe-Bache made the following entry: Office supplies expense 2,100 Cash 2,100 b. On the last day of 2017, Midwest Importers received a $96,000 prepayment from a tenant for 2018 rent of a building. Midwest recorded the receipt as rent revenue c. At the end of 2017, Dinkins-Lowery Corporation failed to accrue interest of $8,600 on a note receivable. At the beginning of 2018, when the company received the cash, it was recorded as interest revenue. Required For each error: 1. What would be the effect of each error on the income statement and the balance sheet in the 2017 financial statements? 2. Prepare any journal entries each company should record in 2018 to correct the errors. Complete this question by entering your answers in the tabs below Required: For each error: 1. What would be the effect of each error on the income statement and the balance sheet in the 2017 financial statements? 2. Prepare any journal entries each company should record in 2018 to correct the errors Complete this question by entering your answers in the tabs below Required 1 Required 2 What would be the effect of each error on the income statement and the balance sheet in the 2017 financial statements? Error a Income Statement: Balance Sheet: Error b Income Statement Balance Sheet: Error c Complete this question by entering your answers in the tabs below Required Required 2 What would be the effect of each error on the income statement and the balance sheet in the 2017 financial statements? Error Income Statement: Balance Sheet: Error b Income Statement: Balance Sheet: Error c Income Statement: Balance Sheet Prepare any journal entries each company should record in 2018 to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record correction of office supplies error. Note: Enter debits before credits. Transaction General Journal Debit Credit Prepare any journal entries each company should record in 2018 to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record correction of rent received in advance Note: Enter debits before credits. Transaction General Journal Debit Credit Prepare any journal entries each company should record in 2018 to correct the errors. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record correction of interest revenue on note receivable Note: Enter debits before credits. Transaction General Journal Debit Credit
