Hammer company is in the process of adjusting and correcting its books at end of thr 2015. In reveviwing its record, the following information is compiled.

1. Hammer has failed to accrue salaries and wages payable at end of each of the last 2 yars as follows:

December 31,2014 $6100

Deccember 31,2015 $4500

2. In reviewing the december 31, 2015 inventory, hammer discorved errors in its inventory taking procedures that have caused inventories for the last 3 years to be incorrect as follows:

December 31,2013 overstated $8900

December 31, 2014 understated $15000

December 31, 2015 overstated $4600

Hammer has already ,ade an entry that established the incorrect december 31, 2015 inventory amount.

3. Before 2015. hammer accounted for its income from long term construction contracts on the completed contract basis. Early in 2015, hammer changed to the percentage-of-completion basis for accounting purpose it continues to use the completed contract method for tax purposes. Income for 2015 has been recorded using the percentage-of-completion method. The following figure for pretax income are available:

completed contract Percentage-of-completion

Prior to 2015 210,000 256,000

2015 55,000 84,000

Required:- Prepare the journal entries necessary at december31, 2015, to record the above corrections and changes. The books are still open for 2015. The income tax rate is 30%. Hammer has not yet recorded its 2015 income tax expense and payable amounts so current-year tax effects may be ignored. Prior-year tax effects must be considered in item 3.