You are reviewing the financial statements for Jones Electric Company for 2019 and have found a series of errors.

Account Balance Supplies $36,000 Prepaid insurance $18,000 Unearned revenue $50,000 Accrued liabilities $12,000 Office expenses $30,000 Property, plant and equipment $72,000 Accumulated depreciation ($10,400) Retained earnings, 1/1/19 $150,000 Prepare correcting journal entries (a) if the books are open and (b) if the books are closed. c. Assume that Jones Electric is only providing an income statement and balance sheet for the current year. Show the necessary adjustment to the beginning retained earnings (if applicable).

Errors:

1. A count of supplies show a balance of $12,000.

2. The balance for prepaid insurance should be $9,000.

3. Twenty-five percent of the unearned revenue was earned but not recorded.

4. A consultant provided services worth $9,000 in December and it was not accrued or reflected in the balance above.

5. Office equipment was purchased for $30,000 and recorded as an expense instead of as an asset. The equipment has a 5 year useful life and no salvage value and uses straight-line depreciation.