Vance Company reported net incomes for a three-year period as follows:

2018, $191,000; 2019, $199,000; 2020, $180,000.

In reviewing the accounts in 2021 after the books for 2020 have been closed, you find that the following errors have been made:

1. The 2018 ending inventory was understated by $8,300.
2. A machine was purchased in Jan of 2018. The cost is $150,000. The salvage value is $21,000. The useful life is 6 years and the company uses straight-line depreciation. Upon review, you notice that the accountant has been using $12,000 as the salvage value for all years of the asset so far.
3. The entry for amortizing a patent, $6,200, was omitted in 2019 only.
4. The accrual for utilities of $2,500 on Dec 31, 2019 was omitted.
5. In Nov of 2020, $14,000 was received from a customer for work to be performed in the future. It was recorded properly. As of Dec 31, 2020, $9,000 had been earned, but no adjusting entry was made.

Ignore the effect of income taxes for this problem.

Instructions

(a) Determine corrected net incomes for 2018, 2019, and 2020.

(b) Journalize any entries needed in 2021 to bring the books of the company up to date, assuming that the books have been closed for 2020.