The following errors in the accounting records of the Chipp & Simon Partnership were discovered on January 10, 2013.

The partners share net income and losses as follows: 65%, Chipp; 35%, Simon.
1. Prepare a correcting journal entry on January 10, 2013, assuming that the books were closed for 2012.
2. Prepare a correcting journal entry on January 10, 2013, assuming that the books are still open for 2012 and that the partnership uses the perpetual inventory system.

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Ending Accrued Rent Accrued Interest Inventories Depreciation Revenue Not Expense Not Overstated Understated Year of Error 2010 2011 2012 Recorded Recorded 11,(x0 n,x) $42,000 $18,000 34,000 $7,000