During the physical count, it was found that $$10,000$ of merchandise was obsolete. Record the

adjusting entry on December $31.$

Insurance was paid December $1$ for $1$ year. Record the adjusting entry on December $31.$

On July $1,$ Omega borrowed $$30,000$ from Really Big Bank. The terms state an interest rate of

$9\%,$ with interest due each year and principal due in two years on June $30.$ Record the adjusting

entry on December $31.$

As part of the closing process, it is determined that a $2-$year $$12,000$ insurance policy purchased

on July $1$ was expensed. Record the adjusting entry on December $31.$

As part of the closing process, it is determined that a $2-$year $$12,000$ insurance policy purchased

on July $1$ of the previous year was expensed rather than capitalized. Ignore income tax effects

$($pp$.1,182-1,184).$ Record the adjusting entry on December $31.$

How much was insurance expense overstated last year?

Was net income correctly stated last year?

What should the balance of prepaid insurance be now?

Record the adjusting entry on December $31.$