The internal auditors for Rockford Products discovered early in 2009 these errors and omissions in their review of the 2008 financial records. The 2008 financial statements have already been issued.
1. A material liability for salaries of $13,000 at December 31, 2008, was not recorded. The salaries were charged to salary expense when paid.
2. Equipment costing $5,500 was purchased without first securing a competitive bid, in violation of company policy.
3. Prior year's depreciation expense was materially understated by $13,500 due to a computation error.
Required: Prepare any necessary journal entries required as a result of the findings of the internal auditors. Ignore income tax effects.

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The Answer of The internal auditors for Rockford Products discovered early in 2009 these errors and omissions in their review of the 2008 financial records. The 2008 financial statements have already been issued.
1. A material liability for salaries of $13,000 at December 31, 2008, was not recorded. The salaries were charged to salary expense when paid.
2. Equipment costing $5,500 was purchased without first securing a competitive bid, in violation of company policy.
3. Prior year's depreciation expense was materially understated by $13,500 due to a computation error.
Required: Prepare any necessary journal entries required as a result of the findings of the internal auditors. Ignore income tax effects.

The Internal Auditors for Rockford Products Discovered Early in 2009