The first audit of the books for Ringer Company was made for the year ended December 31, 2011. In reviewing the books, the auditor discovered that certain adjustments had been overlooked at the end of 2010 and 2011 and that other items had been improperly recorded. Omissions and other failures for each year are summarized as follows:

Prepare journal entries to correct revenue and expense accounts for 2011, and record assets and liabilities that require recognition on the balance sheet as of December 31, 2011. Assume that the nominal accounts for 2011 have not yet been closed into the income summaryaccount.

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2010 2011 Sales Salaries Payable Interest Receivable Prepaid Insurance Advances from Customers Collections from customers had been included in sales but $1800 $1400 700 450 1,900 550 250 2,200 should have been recognized as advances from customers because goods were not shipped until the following year.) 1,600 300 Equipment (Expenditures had been recognized as repairs but should have been recognized as cost of equipment, the depreciation rate on such equipment is 10% per year, but depreciation in the year of the expenditure is to be recognized at 5%.)