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Dudley Company failed to recognize the following accruals. It also recorded the prepaid expenses and unearned revenues as expenses and revenues, respectively, in the following year when paid or collected.

	2018	2019	2020
Prepaid Insurance	$500	$900	$1,100
Estimated Warranty Liability	800	700	950
Rent Revenue received in advance	300	400	1,300
Interest earned but not received	600	1,000	1,200

The reported pretax income was $20,000 in 2018, $25,000 in 2019, and $23,000 in 2020.

Required:

2.	Prepare the journal entries necessary in 2020 if the errors are discovered at the end of that year. Ignore income taxes.
	3. Prepare the journal entries necessary in 2018 if the errors are discovered at the end of that year. Ignore income taxes.

2. Prepare one compound journal entry necessary on December 31, 2020 if the errors are discovered at the end of that year.

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9

3. Prepare one compound journal entry necessary on December 31, 2018 if the errors are discovered at the end of that year. Ignore income taxes.

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

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