(Error Analysis and Correcting Entry) The reported net incomes for the first 2 years of US Books Corp. were as follows: 2013, $268,000; and 2014, $412,000. Early in 2015, the following errors were discovered.
1. Depreciation of equipment for 2013 was understated $68,500.
2. Depreciation of equipment for 2014 was overstated $39,000.
3. December 31, 2013, inventory was overstated $12,000.
4. December 31, 2014, inventory was understated $73,600.
Instructions
Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.