Conrad Playground Supply underwent a restructuring in 2021. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries are prepared.

1. Additional computers were acquired at the beginning of 2019 and added to the companys office network. The $44,000 cost of the computers was inadvertently recorded as maintenance expense. Computers have five-year useful lives and no material salvage value. This class of equipment is depreciated by the straight-line method.
2. Two weeks prior to the audit, the company paid $16,000 for assembly tools and recorded the expenditure as office supplies. The error was discovered a week later.
3. On December 31, 2020, merchandise inventory was understated by $76,000 due to a mistake in the physical inventory count. The company uses the periodic inventory system.
4. Two years earlier, the company recorded a 4% stock dividend (1,800 common shares, $1 par) as follows:

Retained earnings	1,800
Common stock		1,800

The shares had a market price at the time of $12 per share.

5. At the end of 2020, the company failed to accrue $100,000 of interest expense that accrued during the last four months of 2020 on bonds payable. The bonds, which were issued at face value, mature in 2025. The following entry was recorded on March 1, 2021, when the semiannual interest was paid, as well as on September 1 of each year:

Interest expense	150,000
Cash		150,000

6. A three-year liability insurance policy was purchased at the beginning of 2020 for $71,400. The full premium was debited to insurance expense at the time.

Required: For each error, prepare any journal entry necessary to correct the error, as well as any year-end adjusting entry for 2021 related to the situation described. (Ignore income taxes.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer is not complete.

No	Transaction	General Journal	Debit	Credit
1	a(1)	Cashselected answer incorrect	1selected answer incorrect	not attempted
		Accumulated depreciationselected answer correct	not attempted	1selected answer incorrect
2	a(2)	Accumulated depreciationselected answer incorrect	10selected answer incorrect	not attempted
		Cashselected answer incorrect	not attempted	10selected answer incorrect
3	b(1)	Buildingsselected answer incorrect	300selected answer incorrect	not attempted
		Equipmentselected answer incorrect	not attempted	300selected answer incorrect
4	b(2)	Buildingsselected answer incorrect	100selected answer incorrect	not attempted
		Cashselected answer correct	not attempted	100selected answer incorrect
5	c(1)	Cashselected answer incorrect	1,000selected answer incorrect	not attempted
		Income tax expenseselected answer incorrect	not attempted	1,000selected answer incorrect
6	c(2)	Dividendsselected answer incorrect	10selected answer incorrect	not attempted
		Accumulated depreciationselected answer incorrect	not attempted	10selected answer incorrect
7	d(1)	Income tax expenseselected answer incorrect	10selected answer incorrect	not attempted
		Income tax expenseselected answer incorrect	not attempted	10selected answer incorrect
8	d(2)	Inventoryselected answer incorrect	20selected answer incorrect	not attempted
		Toolsselected answer incorrect	not attempted	20selected answer incorrect
9	e(1)	Insurance expenseselected answer incorrect	10selected answer incorrect	not attempted
		Buildingsselected answer incorrect	not attempted	10selected answer incorrect
10	e(2)	Cashselected answer incorrect	10selected answer incorrect	not attempted
		Insurance expenseselected answer incorrect	not attempted	10selected answer incorrect
11	f(1)	Dividendsselected answer incorrect	20,000selected answer incorrect	not attempted
		Retained earningsselected answer correct	not attempted	20,000selected answer incorrect
12	f(2)	Accumulated depreciationselected answer incorrect	25,000selected answer incorrect	not attempted
		Cashselected answer incorrect	not attempted	25,000selected answer incorrect