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The first audit of the books of Flounder Company was made for the ycar ended December 31, 2026. In examining the books, the auditor found

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The first audit of the books of Flounder Company was made for the ycar ended December 31, 2026. In examining the books, the auditor found that certain items had been overlooked or incorrectly handted in the tast 3 years. These items are: 1. At the beginning of 2024 , the company purchased a machine for $540,000 (salvage value of $54,000 ) that had a useful life of 6 years. The bookkeeper used straight-line depreciation but failed to deduct the salvage value in computing the depreciation base for the 3 years. 2. At the end of 2025 , the company failed to accrue sales salaries of $43,000. 3. A tax lawsuit that involved the year 2024 was settled late in 2026. It was determined that the company owed an additional $82,000 in taxes related to 2024, The company did not record a liability in 2024 or 2025 because the possibility of loss was considered remote, and charged the $82,000 to a loss account in 2026 . 4. Flounder Company purchased a copyright from another company early in 2024 for $46,000. Flounder had not amortized the copyright because its value had not diminished. The copyright has a useful life at purchase of 20 years. 5. In 2026 , the company wrote off $91,000 of inventory considered to be obsolete; this loss was charged directly to Retained Earnings. Prepare the journal entries necessary in 2026 to correct the books, assuming that the books have not been closed. Disregard effects of corrections on income tax. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to 0 decimal ploces, eg, 1250. List all debit entries No. Account IIties and texplanation 1. Accurnalated Depreciation Machinery Depreciation Expense. Retained Earning: 2. Retained Earnings: Salaties and Wages Expense 3. 4. Amortization Expense Retained Earnings Copyrights 5. Loss Due to Write off of imentory Retained Earnines

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