American Manufacturers, Inc. Property, Plant, and Equipment and Accumulated Depreciation October 31, 1997 Property. Plant, and Equipment Accumulated Depreciation Balance Balance Depreciation Balance Balance Account. 10/31/96 Additions Disposals Other 10/31/97 Rate Method 10/3 1/96 Provision Disposal 10/31/97 Land 650,000 70,000 720, 000 Buildings 3,270,000 230,000 (30,000) @ 3,470, 000 5% S/L 1, 144,500 168,500 0 1,313,000 Equipment 1, 750,000 90,000 Z (12,000) 1, 828, 000 10% S/L 700,000 179,500 J (12,000) 867,500 SOURCE: AUDIT 1997 EXAMS, #4, PARTS 1-18 - QUESTION Fixtures 850 000 200 000 30.000 @ 1,080 000- 15% S/L 510,000 144 750 J 654 750- 6 520 000 590 0m (12 000) 7 098 000 2 354 500 492 750 (12 000) 2 835 250 Items to be Answered List of procedures/ comments-Property, Plant, and Equipment and Accumulated Depreciation Does not recompute correctly. Tested reasonableness of calculation. Traced amount to current year's trial balance and general ledger. Reclassification entry for fixtures erroneously recorded as buildings. Reclassification entry for buildings erroneously recorded as fixtures. Traced amount to prior year's working papers. Sold six fully-depreciated computers to employees; no audit procedures necessary. Confirmed, with exception. Confirmed, without exception, Examined supporting vendors' invoices, canceled checks, asset subsidiary ledger And board of directors' minutes of meetings authorizing transactions. ( K) Examined supporting work orders and engineers' reports, canceled checks, asset subsidiary ledger, and board of directors' minutes of meetings authorizing transactions. (L) Examined supporting deed and purchase contract, canceled checks, asset subsidiary ledger, and board of directors' minutes of meetings authorizing transactions. A-22