Concord Company is in the process of adjusting and correcting its books at the end of $2025.$ In reviewing its records. Accounts Payable

Accounts Receivable

Accumulated Depreciation$-$Buildings

Accumulated Depreciation$-$Equipment

Accumulated Depreciation$-$Machinery

Advertising Expense

Allowance for Doubtful Accounts

Amortization Expense

Bad Debt Expense

Cash

Common Stock

Compensation Expense

Consignment Out

Construction in Process

Copyrights

Cost of Goods Sold

Deferred Gross Profit

Deferred Tax Liability

Depreciation Expense

Discount on Bonds Payable

Dividend Revenue

Due to Customer

Equipment

Equity Investments

Equity Investments $($Avallable$-$for$-$Sale$)$

Equity Investments $($Equlty Method$)$

Fair Value Adjustment

Finance Expense

Gain on Disposal of Plant Assets

Hotding Gain or Loss$-$Investments

Ificome Tayes Receivable Incurance Expense

Interest Expense

Interesi Payable

interesp Recelvable

Interest Revenue

Inventory

Inventory on Consignment

Investment Income

Lawsult Llability

Lawsult Loss

Loss Due to Market Decline of Inventory

Machinery

Maintenance and Repairs Expense

No Entry

Prepaid Insurance

Property, Plant, and Equipment

Purchases

Rent Revenue

Retained Earnings

Salaries and Wages Expense

Salarles and Wages Payable

Sales Commission Expense

Sales Commission Payable

Sales Revenue

Sales Tax Expense

Sales Taxes Payable

Share Capital

Supplies

Supplies Expenses

Trademarks

Unearned Rent Rovenue

Unrealized Holding Galn or Loss$-$Equity

Unrealized Holding Gain or Loss$-$Income

Warranty Expenge

Warranty Llabillty Prepare the journal entries necessary at December $31,2025,$ to record the above corrections and changes. The books

are still open for $2025.$ The income tax rate is $20\%.$ Concord has not yet recorded its $2025$ income tax expense and

payable amounts so current$-$year tax effects may be ignored. Prior$-$year tax effects must be considered in item $4.$

$($Credit account titles are automatically indented when the amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

$1$

$1I$

the following information is complled.

Concord has failed to accrue sales commissions payable at the end of each of the last $2$ years, as follows.

December $31,2024$

$$3,400$

December $31,2025$

$2,700$

In reviewing the December $31,2025,$ inventory, Concord discovered errors in its inventory$-$taking procedures

that have caused inventories for the last $3$ vears to be incorrect. as follows.

December $31,2023$

Understated

$$16,300$

December $31,2024$

Understated

$19,000$

December $31\mathrm{.}2025$

Overstated

$7,200$

Concord has already made an entry that established the incorrect December $31,2025,$ Inventory amount.

At December $31,2025,$ Concord decided to change the depreciation method on its office equipment from

double$-$decllning$-$balance to straight$-$llne. The equipment had an orlginal cost of $$109,200$ when purchased on

January $1,2023.$ It has a $10-$year useful life and no salvage value. Depreciation expense recorded prior to $2025$

under the double$-$declining$-$balance method was $$32,600.$ Concord has already recorded $2025$ depreciation

expense of $$14,000$ using the double$-$declining$-$balance method.

Before $2025.$ Concord accounted for its income from long$-$term construction contracts on the cost$-$recovery

basis. Early in $2025.$ Concord changed to the percentage$-$of$-$completion basis for accounting purposes. It

continues to use the cost$-$recovery method for tax purposes. Income for $2025$ has been recorded using the

percentage$-$of$-$completion method. The following information is available.