Prepare any necessary adjusting journal entries and determine the effect of each entry on net income.

12. While analyzing the "other income" account you noticed a $84,000 CR posted from the nted the sale of accounts general joumal. On closer review you determined that it receivable, without recourse, that are still on the books in the amount of $105,000. You also determined that there was a related allowance for doubtful accounts in the amount of $15,000 13. While reviewing the prepaid insurance and insurance expense accounts, you noted that the balance of the prepaid insurance account was S140,000 per the books, and that there were no entries made to insurance expense. Per your calculations, the prepaid insurance account should have had a balance of $18,000 14. While analyzing the sales account you noticed a S50,000 CR from the general jounal (instead of the sales journal). Upon further investigation, you determined that it represe been incurred through year-end, but had not been recorded. nted loan proceeds. You also determined that S500 of related interest expense had 15. While reviewing the accounts payable cutoff, you were informed that all invoices received in January 2018 were recorded as January purchases. After spot checking the large invoices you determined that purchases in the amount of S64,000 were delivered in December, but were recorded as January payables. 16. While reviewing large direct distributions in the January 2018 cash disbursements journal, you noted purchases in the amount of $18,000 that were actually made in December 2017 17. While inquiring if any vendor invoices received were being held, a nervous employee mentioned that you might want to look in the former controller's file cabinet. When you investigated you found a thick folder containing invoices for that never been given to the accounts payable clerk. The invoices were for purchases, totaled S81,000 and were all for the period under audit. 18. While reviewing the January 2018 payroll journal you noticed that Payroll of S35,000, for the week ending December 31, 2017, was actually paid and expensed on January 7h 2018. There was no other unpaid payroll CR balance in the payroll payable account. Il. On December 31, 2017, there was a $18,000 19. After determining qualified payroll for the period, you determined that the pension expense was $171,000. There was no liability recorded on the books and all payments made during the year related to the prior year liability