In May 20X5, the newly appointed controller of Butch Baking Corporation conducted a thorough review of past accounting, particularly of transactions that exceeded the company's normal level of materiality. As a result of his review, he instructed the company's chief accountant to correct two errors: a. 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 $1,100,000. Butch depreciates its factory equipment on the straight-line basis over 10 years. A full year's depreciation is charged in the year that equipment is acquired. b. 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 $123,000. 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): 20XO 20X1 20X2 20X3 20X4 Gross revenue $ 14,700 $ 16,100 $ 17,300 $ 16,900 $ 15,700 Net income 1,940 2,110 840 2,280 1,830 Total assets 137,000 156,000 146,260 146,000 132,000 Total liabilities 49,000 65,500 69,170 68,000 63,000 Net assets 88,200 88,200 77,400 77,400 78,900 Earnings per $ 19.40 $ 21.10 $ 8.40 $ 22.80 $ 18.30 share* *100,000 shares outstanding 20X0 20X2 20X3 Gross revenue $ 14,700 $ 1,940 20X1 16,100 $ 2,110 17,300 $ 840 16,900 $ 2,280 20X4 15,700 1,830 137,000 156,000 146,260 146,000 132,000 Net income Adjusted net income Total assets Adjusted total assets Total liabilities Adjusted total liabilities Net assets Earnings per share 49,000 65,500 69,170 68,000 63,000 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.)