The following errors in the accounting records of the Willis & Glassett Partnership were discovered on January 10, 2008.

The partners share net income and losses as follows: 60%, Willis; 40%, Glassett.
1. Prepare a correcting journal entry on January 10, 2008, assuming that the books were closed for 2007.
2. Prepare a correcting journal entry on January 10, 2008, assuming that the books are still open for 2007 and that the partnership uses the perpetual inventorysystem.

Transcribed Image Text:

Ending Inventories Depreciation Revenue Not Expense Not Accrued Rent Accrued Interest Year of Error Overstated Understated Recorded Recorded 2005 2006.. 2007 7.000 21,000 $30,000 $12,000 19,000 $3,000