The following errors in the accounting records of the Chipp & Simon Partnership were discovered on January 10, 2011.

The partners share net income and losses as follows: 65%, Chipp; 35%, Simon.
1. Prepare a correcting journal entry on January 10, 2011, assuming that the books were closed for 2010.
2. Prepare a correcting journal entry on January 10, 2011, assuming that the books are still open for 2010 and that the partnership uses the perpetual inventorysystem.

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Ending Inventories Depreciation Revenue Not Expense Not Overstated Understated Recorded Accrued Rent Accrued Interest Year of Error Recorded 2008 2009 2010 $42000 $11,000 31,000 $18,000 34,000 $7,000