j. Installment payments on Faubert's long-term debt begin in Year 6; $10,000 is due each year for four years. Faubert does not intend to make the Year 6 scheduled payment; the Year 6 and Year 7 amounts will be paid in Year 7, including interest and penalties totaling $2,720. Faubert Company Income Statements For Year Ended December 31 Year 5 For Year Ended December 31 Year 4 Sales Cost of Goods Sold $850,000 (340,000) $800,000 (400,000) Gross Profit $510,000 $400,000 Operating Expenses: Insurance (9,000) (29,000) Wages Depreciation (229,000) (140,000) (230,000) (130,000) Income from Operations $132,000 $11,000 Other Revenues and Expenses: Interest Revenue Bad Debt Expense Rent Revenue Gain on Exchange of Machine 28,000 (4,300) 23,000 4,000 30,000 (4,400) 25,000 -0- Net Income $182.700 $61,600 Faubert Company Balance Sheets December 31, Year 5 December 31, Year 4 Assets Current Assets Cash and Equivalents Receivables (net of allowance) Inventories Prepaid Expenses and Other Assets Total Current Assets $580,100 220,500 85,000 30,300 915,900 $340,000 196,000 75,000 22,500 633,500 Land Plant and Machines, Net Other Assets Total Assets 72,000 320,000 28,300 $1,336,200 90,000 275,000 29,800 $1,028,300 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable Rent Payable Unearned Revenue Wages Payable Current Portion of Long-Term Debt Total Current Liabilities $59,000 61,000 4,000 17,000 10,000 151,000 $10,400 43,000 3,000 2,400 $58,800 Long-Term Debt Total Liabilities 30,000 $181,000 40,000 98,800 Shareholders' Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock (at cost) Total Shareholders' Equity Total Liabilities and Shareholders' Equity 100,000 792,000 314,100 (50,900) 1,155,200 $1,336,200 100,000 749,000 131,400 (50,900) 929,500 $1,028,300 REQUIRED 1. Correcting journal entries, if applicable, for items a. through j. If no correcting journal entry is needed, indicate "No CJE." 2. Corrected and restated Year 5/Year 4 Faubert comparative income statement and balance sheet