In 2018, the internal auditors of KJI Manufacturing discovered
the following material errors made in prior years:
Equipment was purchased on June 30, 2016, for $130,000. The
purchase was incorrectly recorded as a debit to repair and
maintenance expense. The equipment has a useful life of five years
and no residual value.
On March 31, 2017, $62,000 was paid to a contractor to
landscape the area around a manufacturing plant including the
installation of a sprinkler system. The expenditure...