In reviewing the books of Unger, Inc. the auditor has discovered some errors that occurred during 2018 and 2019. No errors were corrected during 2018 and the books have not yet been closed for 2019. Prepare journal entries to correct each of the following situations. The company uses the straight-line method for deprecation.

(a) A two-year fire insurance policy was purchased on May 1, 2018, for $11,520. The entire amount was debited to Prepaid Insurance. No adjusting entry was made in 2018 or yet in 2019.

(b) Unger bookkeeper debited a $3,400 repair bill to the communications expense account in 2019.

(c) Unger bought a truck on January 1, 2017 for $196,000 with a $16,000 estimated salvage value and a six-year life. The company debited an expense account and credited cash on the purchase date for the entire cost of the asset.

(d) On December 31, 2018, Unger received $5,000 as a prepayment for renting out some of its vacant office space for the following year. At the time of receipt of the rent, the company debited Cash and credited Rent Income. No adjusting entry was made in 2018.

(e) The company has consistently omitted from its records wages earned by employers but not paid at the end of the calendar year. The amounts omitted were:

December 31, 2017 $1,000

December 31, 2018 1,400

December 31, 2019 1,600

When paid in the year following that in which they were earned, the company recorded the amounts as expenses.

(f) The company did not record on December 31, 2018, interest receivable in the amount of $240 that it should have recorded.