The first audit of the books of Skysong Company was made for the year ended December 31, 2018. In examining the books, the auditor found that certain items had been overlooked or incorrectly handled in the last 3 years. These items are:

1.		At the beginning of 2016, the company purchased a machine for $537,000 (salvage value of $53,700) 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 2017, the company failed to accrue sales salaries of $43,000 which was paid in 2018 and was debited to Salaries and Wages Expense.
3.		A tax lawsuit that involved the year 2016 was settled late in 2018. It was determined that the company owed an additional $86,000 in taxes related to 2016. The company did not record a liability in 2016 or 2017 because the possibility of loss was considered remote, and charged the $86,000 to a loss account in 2018.
4.		Skysong Company purchased a copyright from another company early in 2016 for $54,000. Skysong had not amortized the copyright because its value had not diminished. The copyright has a useful life at purchase of 20 years.
5.		In 2018, the company wrote off $92,000 of inventory considered to be obsolete; this loss was charged directly to Retained Earnings.

Prepare the journal entries necessary in 2018 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 amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g, 1250.)

List of accounts

Accounts Payable Accounts Receivable Accumulated Depreciation-Building Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Advertising Expense Amortization Expense Allowance for Doubtful Accounts Bad Debt Expense Cash Compensation Expense Consignment Out Construction in Process Copyrights Cost of Goods Sold Deferred Gross Profit Deferred Tax Liability Depreciation Expense Dividend Revenue Due to Customer Discount on Bonds Payable Equipment Equity Investments (Available-for-Sale) Equity Investments (Equity Method) Fair Value Adjustment Finance Expense Gain on Disposal of Plant Assets Income Tax Receivable Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Inventory on Consignment Investment Revenue Lawsuit Liability Lawsuit Loss Loss Due to Market Decline of Inventory Loss Due to Write off of Inventory Machinery Maintenance and Repairs Expense No Entry Prepaid Insurance Property, Plant, and Equipment Purchases Rent Revenue Retained Earnings Revenue from Investment Salaries and Wages Expense Salaries and Wages Payable Sales Sales Commission Expense Sales Commission Payable Sales Revenue Sales Tax Expense Sales Tax Payable Share Capital Supplies Supplies Expenses Trademarks Unearned Rent Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss - Income Warranty Expense Warranty Liability

No. Account Titles and Explanation Debit Credit 1. 537000 537000 2. 43000 43000 3. 86000 86000 4. 54000 54000 5. 92000 92000