In May 20X5, the newly appointed controller of Butch Baking Corporation conducted a thorough review of past accounting, particularly of transactions that exceeded the companys normal level of materiality. As a result of his review, he instructed the companys chief accountant to correct two errors:

1. In 20X2, the company made extensive improvements to the baking process and installed a substantial amount of new equipment. The entire cost of the process improvements and equipment was accidentally charged to income as restructuring expense in 20X2. However, the equipment should have been capitalized and added to the factory equipment account. The cost of the equipment was $1,000,000. Butch depreciates its factory equipment on the straight-line basis over 10 years. A full years depreciation is charged in the year that equipment is acquired.
2. A year-end cut-off error occurred in 20X3. A large shipment of nonperishable supplies arrived from China on the last day of 20X3 and had been left in the shipping containers outside the main plant. As a result, the supplies were recorded as received in 20X4 and had not been included in the year-end 20X3 inventory count. The account payable also had not been recorded in 20X3. The supplies cost $130,000.

Like most companies, Butch Baking presents a five-year financial summary in its annual report. The 20X4 summary contained the following information (in thousands of dollars, except EPS):

	20X0				20X1			20X2			20X3			20X4
Gross revenue		$	15,000		$	16,300		$	17,800		$	17,400		$	16,400
Net income			1,980			2,140			870			2,340			1,920
Total assets			140,000			158,000			151,490			150,000			139,000
Total liabilities			50,100			66,300			71,640			70,000			66,000
Net assets			89,900			91,700			79,850			80,000			73,000
Earnings per share*		$	19.80		$	21.40		$	8.70		$	23.40		$	19.20

*100,000 shares outstanding

3. Prepare the journal entry or entries that are necessary to correct the accounts at 31 December 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter answer in thousands, not in whole Canadian dollars.)

2. Revise the financial summary. (Enter answer in thousands, not in whole Canadian dollars. Round EPS answers to 1 decimal place.) 20XO 20X1 20X2 20X3 20X4 Gross revenue 17,800 $ 15,000 $ 1,980 16,300 $ 2,140 17,400 $ 2,340 16,400 1,920 Net income 870 Adjusted net income Total assets 140,000 158,000 151,490 150,000 139,000 Adjusted total assets Total liabilities 50,100 66,300 71,640 70,000 66,000 Adjusted total liabilities Net assets Earnings per share