Please treat each of the following situations independently. Assume that each of the lettered items described below are discovered in 2018 by Curry, Inc. For each of the items described below, make the necessary journal entry in 2018 to record the information. If no journal entry is required, write No Entry Required. Assume a 30% tax rate and assume that Curry uses straight-line depreciation for all depreciable assets.

a. On September 30, 2017, Curry collected $48,000 cash for three years rent in advance. In 2018 Curry discovered that the $48,000 was recorded as rent revenue in 2017.

b. A pressing machine was acquired by Curry on January 2, 2015 for $45,000. It has no salvage value and a 5-year useful life. In 2018, it was discovered that the pressing machine was expensed in 2015 rather than recorded as an asset.

c. Inventory #4328 with a value of $29,000 was not included in the December 31, 2016 inventory total.

d. On December 10, 2017 Curry performed services on credit for $69,000. In 2018 it was discovered that this transaction was recorded on Currys books as a debit to Accounts Receivable and credit to Service Revenue for $96,000.

e. Annual depreciation of $3000 for a machine still in use by Curry was mistakenly recorded as $8000 in 2016 and 2017.

f. On January 2, 2016 equipment costing $30,000 with a 5-year useful life was acquired. No salvage value is associated with the equipment. In 2018 it was discovered that depreciation was not taken in 2016 and 2017.

g. Sales revenue for $27,000 and cost of goods sold of $13,000 were recorded by Curry on December 31, 2016, but it was discovered in 2018 that the merchandise did not reach the customers business until January 3, 2017. Consequently, the transaction should have been recorded in 2017.

h. Inventory #1971 with a value of $19,000 was not included in the December 31, 2017 inventory total. i. On January 2, 2015 Curry acquired a packaging machine for $39,000 with no salvage value. The packaging machine was expected to have a 3-year useful life. In 2018, it was discovered that the packaging machine was recorded as an expense when acquired in 2015. The packaging machine is no longer being used.

2. Please treat each of the following situations independently for Kerr, Co in 2018. Assume that Kerr has a 30% tax rate. For each of the items below, prepare ALL necessary journal entries for 2018 related to the information. If no journal entry is required, write No Entry Required.

a. On January 2, 2016, Kerr bought equipment for $50,000. The equipment is expected to have a useful life of 9 years and a salvage value of $5000. Kerr used the sum-of-the-years digits method of depreciation in 2016 and 2017, but decided to switch to straight-line depreciation in 2018.

b. On January 2, 2014, Kerr bought equipment for $180,000. The equipment is expected to last 15 years with no salvage value. Kerr uses the straight-line method of depreciation. In 2018, Kerr determines that the useful life of the equipment should be 16 years rather than 15 years.

c. During 2018, Kerr decided to switch from the LIFO method of valuing inventory to FIFO. If FIFO had been used by Kerr prior to 2018, income would have been $87,000 higher than it was under LIFO.