You have been assigned to examine the financial statement of Jackson, Inc. for the year ended December 31, 2017. You discover the following situations in February 2018.

1. Jackson, Inc. purchased $ 2,300 of supplies on December 19, 2017, recording a debit to supplies and credit to Account Payable. The bill was paid on December 30, 2017, but not recorded until January 3, 2018.

2. In 2017, the company sold for $3,500 equipment that had a book value of $2,000 and originally cost $30,000. The company credit the proceeds from the sale to the equipment account. The company made the following entry:

Cash 3,500

Equipment 3,500

Instructions. Assume the trial balance has been prepared but the books HAVE NOT been closed for 2017. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations). b). Assume the trial balance has been prepared but the books HAVE been closed for 2017. Assuming all amounts are material, prepare journal entries showing the adjustment that are required. (Ignore income tax considerations.) c). Prepare a schedule correcting net incomes for 2015, 2016 and 2017 assuming the books HAVE NOT been closed for 2017.

P.S Using US Gaap accounting principles.