Check my wor Conrad Playground Supply underwent a restructuring in 2018. The company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries are prepared. a. Additional computers were acquired at the beginning of 2016 and added to the company's office network. The $45,000 cost of the computers was inadvertently recorded as maintenance expense. Computers have five-year useful lives and no material salvage b. Two weeks prior to the audit, the company paid $17,000 for assembly tools and recorded the expenditure as office supplies. The c. On December 31, 2017, merchandise inventory was understated by $78,000 due to a mistake in the physical inventory count. The d. Two years earlier, the company recorded a 4% stock dividend (2,000 common shares, $1 par) as follows: value. This class of equipment is depreciated by the straight-line method error was discovered a week later company uses the periodic inventory system. 2,000 Common stock 2,000 The shares had a market price at the time of $12 per share. e. At the end of 2017, the company failed to accrue $104,000 of interest expense that accrued during the last four months of 2017 on bonds payable. The bonds, which were issued at face value, mature in 2022. The following entry was recorded on March 1, 2018, when the semiannual interest was paid, as well as on September 1 of each year: 156,000 Cash 156,000 t A three-year liability insurance insurance expense at the time. policy was purchased at the beginning of 2017 for $72.000. The full premium was debited to Required ' nc ans, Mo ar.and M..ctinn ant n, fnr 2ni relatad tn tha Prev ol 7 Next>