The first audit of the books of Whispering Company was made for the year ended December $31,2026.$ In examining the books, the

auditor found that certain items had been overlooked or incorrectly handled in the last $3$ years. These items are:

At the beginning of $2024,$ the company purchased a machine for $$534,000($salvage value of $$53,400)$ 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.

At the end of $2025,$ the company failed to accrue sales salaries of $$42,000.$

A tax lawsuit that involved the year $2024$ was settled late in $2026.$ It was determined that the company owed an additional

$$90,000$ 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 $$90,000$ to a loss account in $2026.$

Whispering Company purchased a copyright from another company early in $2024$ for $$54,000.$ Whispering had not amortized

the copyright because its value had not diminished. The copyright has a useful life at purchase of $20$ years.

In $2026,$ the company wrote off $$81,000$ 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 $0$ for the amounts. Round answers to $0$ decimal places, e$.$g$,1250.$ List all debit entries

before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit