Chapter 22 Quiz:Prepare correcting entries on December 31, 2012 assuming the books HAVENT been closed.

1) On July 1, 2011, an insurance premium of $60,000 was prepaid covering 24 months. The entire amount was charged to expense at the time of purchase.

2) On January 1, 2011, equipment costing $18,000 with no SV & estimated useful life of 5 years was incorrectly charged to expense when purchased. The firm uses sum-of-the-years-digit depreciation.

3) Ending inventory for the year 2010 was overstated by $10,000.

4) On December 31, 2011, the firm didnt accrue wages expense in the amount of $1,500.