For three years the Sandy Caven Company failed to recognize accruals, prepayments, and other transactions in its accounts. Reported net income and a listing of the errors appear below. 20X1 20X2 20x3 $ 12,000 2,000 600 1,300 1,200 $ 4,000 2,500 800 1,800 1,500 $ (1,000) 4,800 200 nil 1,500 5,000 nil 2,800 1,000 nil 3,600 1. Reported net income (loss)... 2. Failed to record accrued revenues 3. Failed to record uncollectible accounts expense 4. Failed to record accrued salaries 5. Understated depreciation expense 6. Goodwill purchased and expensed (Should be Reviewed for Impairment) 7. Overstated ending inventories 8. Failed to record purchase on account; merchandise properly included in ending inventory 9. Failed to recognize unused supplies as an asset (expensed them instead) 10. Failed to recognize gain on sale of land; land credited for amount of proceeds 11. Failed to recognize unearned revenue at end of year nil nil 4,000 300 nil 400 600 nil nil nil 500 900 Note: Goodwill was Impaired by 10.0% Each Year! Required: 1. Recalculate the correct/adjusted net income for each year. 2. Prepare the compound entry, if necessary, to correct the books at the end of 2001, assuming that the books have not been closed. Ignore taxes. 3. Prepare the compound entry, if necessary, to correct the books at the end of 2001, assuming that the books have been closed. Ignore taxes