i need f(1) and f (2) answered

The following are independent errors made by a company that uses the periodic inventory system: Q. Goods in transit, purchased on credit and shipped FOB destination, $10,000, were included in purchases but not in the physical count of ending imventory. b. Purchase of a machine for $2,000 was expensed. The machine has a 4-year life, no residual value, and straightline depreciation is used. c. Wages payable of $2,000 were not accrued. d. Payment of next year's rent, $4,000, was rocorded as rent expense. e. Allowance for doubtful accounts of $5,000 was not recorded. The company normally uses the aging method. 1. Equipment with a book value of $70,000 and a tair value of $100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for $129,960 was recelved and recorded at its face value, and a gain of $59,960 was recognized. No interest revenue was recorded and 14% is a fair tate of inferest. Aequired: 1. Next Level indicate the effect of each of the preceding evrors on the company's assets, liabilitios, shareholders'equity, and net income in the yoar in which the error occurs. State whether the error causes an overstatement (4), an understatement ( ), or no effect (NE). 2. Prepare the correcting joumal entry or entries required at the beginning of the year for each of the prececling errors, assuming the cornpany discovers the error in the year after it was made. Ignove income taxes. 2. Prepare entries to correct the following errors on January 1 : a. Goods in transit, purchased on credit and shipped FOB destination, 510,000 , were included in purchases but not in the physical court of ending inventory. General woumal instructions b. Purchase of a machine for $2,000 was expensed. The machine has a 4-year life, no residual value, and straight-ine depreciabion is used. General Joumd instructions c. Wages payable of $2,000 were not accrued. Assume the wages are unpaid at the time of the entry. Genoral Joumal Instructions How doer groding work? d. Payment of next year's rent, $4,000, was recorded as rent expense. General Joumal Instructions How does grodins mork? e. Allowance for doubtful accounts of $5,000 was not recorded. The company normally uses the aging method. General Joumal Instructions How does sroding work? L. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A2-year, non-interest-bearing note for $129,960 was roceived and recorded at its face value, and a gain of 559,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. (1). Record the adjustment needed to correct the sale of equipment. How dees srodins mork? 1 (2). Prepare the adjustment needed to correct interest related to the note. General loumal Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. The following are independent errors made by a company that uses the periodic inventory system: Q. Goods in transit, purchased on credit and shipped FOB destination, $10,000, were included in purchases but not in the physical count of ending imventory. b. Purchase of a machine for $2,000 was expensed. The machine has a 4-year life, no residual value, and straightline depreciation is used. c. Wages payable of $2,000 were not accrued. d. Payment of next year's rent, $4,000, was rocorded as rent expense. e. Allowance for doubtful accounts of $5,000 was not recorded. The company normally uses the aging method. 1. Equipment with a book value of $70,000 and a tair value of $100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for $129,960 was recelved and recorded at its face value, and a gain of $59,960 was recognized. No interest revenue was recorded and 14% is a fair tate of inferest. Aequired: 1. Next Level indicate the effect of each of the preceding evrors on the company's assets, liabilitios, shareholders'equity, and net income in the yoar in which the error occurs. State whether the error causes an overstatement (4), an understatement ( ), or no effect (NE). 2. Prepare the correcting joumal entry or entries required at the beginning of the year for each of the prececling errors, assuming the cornpany discovers the error in the year after it was made. Ignove income taxes. 2. Prepare entries to correct the following errors on January 1 : a. Goods in transit, purchased on credit and shipped FOB destination, 510,000 , were included in purchases but not in the physical court of ending inventory. General woumal instructions b. Purchase of a machine for $2,000 was expensed. The machine has a 4-year life, no residual value, and straight-ine depreciabion is used. General Joumd instructions c. Wages payable of $2,000 were not accrued. Assume the wages are unpaid at the time of the entry. Genoral Joumal Instructions How doer groding work? d. Payment of next year's rent, $4,000, was recorded as rent expense. General Joumal Instructions How does grodins mork? e. Allowance for doubtful accounts of $5,000 was not recorded. The company normally uses the aging method. General Joumal Instructions How does sroding work? L. Equipment with a book value of $70,000 and a fair value of $100,000 was sold at the beginning of the year. A2-year, non-interest-bearing note for $129,960 was roceived and recorded at its face value, and a gain of 559,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest. (1). Record the adjustment needed to correct the sale of equipment. How dees srodins mork? 1 (2). Prepare the adjustment needed to correct interest related to the note. General loumal Instructions All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback