The Laura Company has the following errors on its books as of December 31, 2020. The books for 2020 have not yet been closed. a. In 2020, fully depreciated equipment (with no residual value) that originally cost $8,000 was sold for $700 as scrap. The company credited the $700 proceeds to Equipment. b. On January 1, 2019, the company recorded the purchase of equipment in exchange for a three-year, noninterest-bearing note payable in the amount of $10,000. Interest rates were then 8%, but no recognition was made of this fact. The present value of $1 at 8% for three periods is 0.7938. (Ignore depreciation.) Required: Prepare journal entries to correct these errors at December 31, 2020. Ignore income taxes. ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance REVENUE 411 Sales Revenue 412 Gain on Sale of Equipment EXPENSES 500 Cost of Goods Sold 181 Equipment 189 Accumulated Depreciation 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Discount on Note Payable 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 213 Discount on Note Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable 541 Depreciation Expense 559 Miscellaneous Expense 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings General Journal 1 2 3 4 5 9 7 GENERAL JOURNAL DATE ACCOUNT TITLE X POST. REF. DEBIT CREDIT