Oriole Company is in the process of adjusting and correcting its books at the end of 2020. In reviewing its records, the following information is compiled.

1.

Oriole has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows.

December 31, 2019		$3,500
December 31, 2020		$2,200

2.

In reviewing the December 31, 2020, inventory, Oriole discovered errors in its inventory-taking procedures that have caused inventories for the last 3 years to be incorrect, as follows.

December 31, 2018		Understated		$15,600
December 31, 2019		Understated		$20,900
December 31, 2020		Overstated		$6,900

Oriole has already made an entry that established the incorrect December 31, 2020, inventory amount.

3.		At December 31, 2020, Oriole decided to change the depreciation method on its office equipment from double-declining-balance to straight-line. The equipment had an original cost of $96,600 when purchased on January 1, 2018. It has a 10-year useful life and no salvage value. Depreciation expense recorded prior to 2020 under the double-declining-balance method was $33,200. Oriole has already recorded 2020 depreciation expense of $12,800 using the double-declining-balance method.
4.		Before 2020, Oriole accounted for its income from long-term construction contracts on the completed-contract basis. Early in 2020, Oriole changed to the percentage-of-completion basis for accounting purposes. It continues to use the completed-contract method for tax purposes. Income for 2020 has been recorded using the percentage-of-completion method. The following information is available.

		Pretax Income
		Percentage-of-Completion		Completed-Contract
Prior to 2020		$160,900		$108,900
2020		59,000		21,600

Prepare the journal entries necessary at December 31, 2020, to record the above corrections and changes. The books are still open for 2020. The income tax rate is 20%. Oriole has not yet recorded its 2020 income tax expense and payable amounts so current-year tax effects may be ignored. Prior-year tax effects must be considered in item 4.

No. Account Titles and Explanation Debit Credit 1. 1 2. 3. 4