In January $2012,$ Pasqual Enterprises purchased a two$-$year insurance policy costing $$1,000.$ Pasqual's accountant debited Insurance Expense, and credited Cash for the entire amount. The company made no adjusting entries at the end of $2012.$ Record the journal entry on December $31,2013,$ to correct the $2012$ error, assuming Pasqual has not closed the books for $2013.$

Assume that on January $1,2012,$ Pinnacle Enterprises purchased a machine for $$10,000$ that had an estimated useful life of five years with no salvage value. The accountant incorrectly expensed this machine in $2012,$ but discovered the error in $2013.$ If we assume that Pinnacle uses straight line depreciation on this asset, record the entry on December $31,2013,$ to correct for this error, given that Pinnacle has already closed the books for $2013($ignore income taxes$)$:

Picadilly Company purchased a computer system for $$111,000$ on January $1,2011.$ It was depreciated based on a $7-$year life and an $$27,000$ salvage value. On January $1,2013,$ Picadilly revised these estimates to a total useful life of $4$ years and a salvage value of $$15,000.$ Calculate the new depreciation rate and prepare Picadilly's journal entry to record $2013$ depreciation expense. $($SL depreciation used$)$

Indicate the effect$-$Understate, Overstate, No Effect$-$that each of the following errors has on $2012$ net income and $2013$ net income.

$\backslash$table$[[,,2013],[,2012],[\backslash$table$[[($a$)$ Equipment $($with $5$ year life$)$ purchased in $2010],[$was expensed.$]],],[($b$)$ Wages payable were not recorded at $\frac{12}{31}\frac{?}{12}.,,],[\backslash$table$[[($c$)$ Equipment $($with $5$ year life$)$ purchased in $2012],[$was expensed.$]],,],[($d$)2012$ ending inventory was overstated.,,$]]$