Listed below are some financial statement classifications coded with letters and, below them, selected transactions and/or account titles.

Code	Financial Statement Classification
	Statement of Comprehensive Income
A	Earnings/loss from continuing operations
B	Earnings/loss from discontinued operations
C	Other comprehensive income
D	Earnings per share
	Statement of Financial Position
E	Current assets
F	Noncurrent assets
G	Current liabilities
H	Noncurrent liabilities
I	Shareholders equity
	Statement of Changes in Shareholders Equity
J	Beginning balance
K	An adjustment (addition to or deduction from) beginning balance
L	Change during the yearretained earnings
M	Change during the yearinvested capital (not designated as a discontinued operation)
N	Change during the yearitems of other comprehensive income
O	Notes to the Financial Statements

Response	Transaction or Account Title
A, E 0.	Accrued interest on long-term receivables
_____ 1.	Provision for restructuring costs
_____ 2.	Accrued liability for employee post-retirement benefits
_____ 3.	Factory equipment designated for sale
_____ 4.	Translation gain on self-sustaining foreign subsidiary
_____ 5.	Appropriation for plant expansion
_____ 6.	Payment of $30,000 additional income tax assessment on prior years income
_____ 7.	Cash dividends declared; not yet paid
_____ 8.	Estimated amount to be collected from a lawsuit against a competitor for patent infringement
_____ 9.	Earnings from a subsidiary that was purchased with the explicit intent to resell it at a higher price
_____ 10.	Exchange loss on accounts receivable balances in euros; the euro balances are hedged
_____ 11.	Amount paid when the company purchased and retired some of its own common shares; the amount paid was in excess of the shares original issue proceeds
_____ 12.	Earnings after income tax from a division held for sale
_____ 13.	Loss due to expropriation of a plant in a foreign country
_____ 14.	Change in the translated net investment in a U.S. subsidiary
_____ 15.	Interest paid during the year plus interest accrued on liabilities
_____ 16.	Dividends received on shares held as an investment
_____ 17.	Damages paid as a result of a lawsuit by an individual injured while shopping in the companys store; the litigation lasted three years
_____ 18.	Cumulative effect of a change in accounting policy
_____ 19.	A $100,000 bad debt is to be written offthe receivable had been outstanding for five years; the company estimates bad debts each year and has an allowance for bad debts
_____ 20.	Adjustment due to correction of an error during current year; the error was made two years earlier

Required:

For each transaction or account title, enter in the space provided one or more code letters to indicate how that item will appear on IFRS statements, either directly or implicitly. The first item, 0, is shown as an example. Comment on any doubtful items.

On 23 November 20X7, when engaged in preparing for the 20X7 fiscal year-end, the chief accountant of Harper Ltd. discovered two accounting errors in the 20X5 statements:

A government ministry had paid $4.5 million in partial settlement of an amount due for a large contract. The contract revenue had already been recognized. However, the payment was accidentally credited to contract revenue instead of to accounts receivable and was included in taxable income.

Inventory purchases of $2.4 million had inadvertently been charged to equipment, a capital asset account, and had been amortized by 10% for each of 20X5 and 20X6. The accounting amortization rate is the same as the CCA rate for tax purposes. The ending and beginning inventories had been properly stated. Therefore, the mistake caused cost of sales to be understated by $2.4 million and pretax earnings to be overstated by the same amount.

Harpers income tax rate is 20%.

Required:

Calculate the earnings correction that Harper must show in the 20X7 financial statements. Where will these amounts be disclosed?

Prepare a general journal entry to record the correction of each error.