Journal entries showing the adjustments

P22-5 (Error Corrections) You have been assigned to examine the financial statements of Vickie L. Lemke Company for the year ended December 31, 2005. You discover the following situations.

1. Depreciation of $3,200 for 2005 on delivery vehicles was not recorded.
2. The physical inventory count on December 31, 2004, improperly excluded merchandise costing $19,000 that had been temporarily stored in a public warehouse. Lemke uses a periodic inventory system.
3. The physical inventory count on December 31, 2005, improperly included merchandise with a cost of $8,500 that had been recorded as a sale on December 27, 2005, and held for the customer to pick up on January 4, 2006.
4. A collection of $5,600 on account from a customer received on December 31, 2005, was not recorded until January 2, 2006.
5. In 2005, the company sold for $3,700 fully depreciated equipment that originally cost $22,000. The company credited the proceeds from the sale to the Equipment account.
6. During November 2005, a competitor company filed a patent-infringement suit against Lemke claiming damages of $220,000. The company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is $125,000. The company has not reflected or disclosed this situation in the financial statements.
7. Lemke has a portfolio of trading securities. No entry has been made to adjust to market. Information on cost and market value is as follows.
Cost Market
December 31, 2004 $95,000 $95,000
December 31, 2005 $84,000 $82,000

8. At December 31, 2005, an analysis of payroll information shows accrued salaries of $12,200. The Accrued Salaries Payable account had a balance of $16,000 at December 31, 2005, which was unchanged from its balance at December 31, 2004.
9. A large piece of equipment was purchased on January 3, 2005, for $32,000 and was charged to Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Lemke normally uses the straight-line depreciation method for this type of equipment.
10. A $15,000 insurance premium paid on July 1, 2004, for a policy that expires on June 30, 2007, was charged to insurance expense.
11. Atrademark was acquired at the beginning of 2004 for $50,000. No amortization has been recorded since its acquisition. The maximum allowable amortization period is 10 years.

Instructions
Assume the trial balance has been prepared but the books have not been closed for 2005. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations.)