Estimated Acquisition

Classification Historical Cost

Date
Useful Life

Land Nov. 2, 2010 16,500,000.00 T

Building Nov. 2, 2010 33,000,000.00 T

20

Building - Additional Jan. 5, 2011 20,000,000.00 T

Improvements

19 5/6

TOTAL BLDG COST 53,000,000.00 T

Furniture & Fixture 1-Jun-10 400,000.00 T

40

Furniture & Fixture 2-Jun-10 480,000.00 T

5

Furniture & Fixture Aug. 20, 2010 600,000.00 T

5

Furniture & Fixture Jul. 10, 2010 240,000.00 T

5

Furniture & Fixture Jul. 11, 2010 280,000.00 T

5

Furniture & Fixture Aug. 15, 2010 320,000.00 T

5

Furniture & Fixture Mar. 18, 2010 1,230,000.00 T

5
TOTAL F&F COST 3,550,000.00 T
 TRANS. EQUIP. Dec. 20, 2010 6,000,000.00 T
10

Office Equipment Aug. 1, 2010 2,050,000.00 T

5

Office Equipment Aug. 1, 2010 25,000.00 T

10

Office Equipment Aug. 1, 2010 25,000.00 T

10

Office Equipment Aug. 1, 2010 30,000.00 T

5

TOTAL OFFICE EQUIP 2,130,000.00 T

TOTAL 81,180,000.00 T

Legend: T Traced to schedule of PPE

G Traced to General Journal
/ Checked footing
// Cross footed

Findings:

Accounts Per Trial Balance

Building 52,350,00

Furniture and Fixture 3,195,00

Transportaion Equipement 4,800,00
Office Equipment 1,704,00
PPE 62,049,00

Conclusion:

The discrepancy between the book value and the audited value of the Property, Plant and Equip
 Recommendations:

12/31/2011 Retained Earnings

Depreciation Expense-Building
Accumulated Depreciation
To correct depreciation recorded for Building for the current and p

12/31/2011 Retained Earnings

Depreciation Expense - Furniture and Fixtures
Accumulated Depreciation-Furniture and Fixture
To correct depreciation recorded for Furniture and Fixture for the p

12/31/2011 Retained Earnings

Depreciation Expense-Transportation Equipment
To correct depreciation recorded for Transportation Equipment for

12/31/2011 Retained Earnings

Depreciation Expense- Office Equipment
Accumulated Depreciation
To correct depreciation recorded for Office Equipment for the curre

Prepared by: APJ 1/24/2012

Nelin D. Barandino

Reviewed by: GDE 1/26/2012

Eli Mae Rose Densing

s
 Sc

Audited Balance -
Unadjusted Balance -
Annual Depreciation Depreciation Expense
Depreciation Expense 2011 2011

1,650,000.00 1,650,000.00 /

1,008,403.36 1,008,403.36 /

2,658,403.36 650,000.00 G 2,658,403.36 //

10,000.00 10,000.00 /

96,000.00 96,000.00 /

120,000.00 120,000.00 /

48,000.00 48,000.00 /

56,000.00 56,000.00 /

64,000.00 64,000.00 /

246,000.00 246,000.00 /

640,000.00 355,000.00 G 640,000.00 //

 600,000.00 1,200,000.00 G 600,000.00 //

410,000.00 410,000.00 /

2,500.00 2,500.00 /

2,500.00 2,500.00 /

6,000.00 6,000.00 /

421,000.00 426,000.00 G 421,000.00 //

4,319,403.36 2,631,000.00 // 4,319,403.36 //

Per Trial Balance Audited Value Difference

52,350,000.00 50,066,596.64

3,195,000.00 2,539,022.22
4,800,000.00 4,800,000.00
1,704,000.00 1,533,583.33
62,049,000.00 58,939,202.19 (3,109,797.81)

e of the Property, Plant and Equipment is a result of understatement in recording the depreciation and accumulated depreciati
for Building for the current and prior periods.

for Furniture and Fixture for the prior periods.

for Transportation Equipment for the current and prior periods.

for Office Equipment for the current and prior periods.

1/24/2012

1/26/2012
 GRACE CORPORATION
Schedule of Property, Plant, and Equipment
31-Dec-11

Adjustments- Unadjusted Balance - Audited Balance -

Depreciation Expense Accumulated Accumulated Adjustments 2010
2011 Depreciation 12/31/10 Depreciation 12/31/10

275,000.00 / 275,000.00

2,008,403.36 - 275,000.00 // 275,000.00

- 5,833.33 / 5,833.33

56,000.00 / 56,000.00

43,333.33 / 43,333.33

22,666.67 / 22,666.67

26,444.44 / 26,444.44

24,000.00 / 24,000.00

192,700.00 / 192,700.00

285,000.00 370,977.78 // 370,977.78

 (600,000.00) - 600,000.00 // 600,000.00

170,833.33 / 170,833.33

1,041.67 / 1,041.67

1,041.67 / 1,041.67

2,500.00 / 2,500.00

(5,000.00) 5,000.00 175,416.67 // 170,416.67

1,688,403.36 5,000.00 1,421,394.44 // 1,416,394.44

Difference Remarks

(2,283,403.36)

(655,977.78)
- Refer to the Scheduel fo PPE

(170,416.67)
(3,109,797.81)

preciation and accumulated depreciation for year 2011.

 275,000.00
2,008,403.36

370,977.78
285,000.00

600,000.00

175,416.67
 Unadjusted Balance -
Book Value Audited Value January Book Value December
Accumulated
January 1, 2011 1, 2011 31, 2011
Depreciation 12/31/11

16,500,000.00 P16,500,000 16,500,000.00

33,000,000.00 32,725,000.00 / ? ?

20,000,000.00 20,000,000.00 / ? ?

53,000,000.00 52,725,000.00 // 650,000.00 T 52,350,000.00

400,000.00 394,166.67 / ? ?

480,000.00 424,000.00 / ? ?

600,000.00 556,666.67 / ? ?

240,000.00 217,333.33 / ? ?

280,000.00 253,555.56 / ? ?

320,000.00 296,000.00 / ? ?

1,230,000.00 1,037,300.00 / ? ?

3,550,000.00 3,179,022.22 // 355,000.00 T 3,195,000.00

 6,000,000.00 5,400,000.00 // 1,200,000.00 T 4,800,000.00

2,050,000.00 1,879,166.67 / ? ?

25,000.00 23,958.33 / ? ?

25,000.00 23,958.33 / ? ?

30,000.00 27,500.00 / ? ?

2,130,000.00 1,954,583.33 // 426,000.00 T 1,704,000.00

81,180,000.00 63,258,605.56 // 2,631,000.00 T 78,549,000.00

-

duel fo PPE
2,283,403.36

655,977.78

600,000.00

5,000.00
170,416.67
 Audited Balance - Adjustments - Audited Value
Accumulated Accumulated Difference
December 31, 2011
Depreciation 12/31/111 Depreciation

16,500,000.00 -

1,925,000.00 ? 31,075,000.00

1,008,403.36 ? 18,991,596.64

2,933,403.36 2,283,403.36 50,066,596.64 (2,283,403.36)

15,833.33 ? 384,166.67

152,000.00 ? 328,000.00

163,333.33 ? 436,666.67

70,666.67 ? 169,333.33

82,444.44 ? 197,555.56

88,000.00 ? 232,000.00

438,700.00 ? 791,300.00

1,010,977.78 655,977.78 2,539,022.22 (655,977.78)

1,200,000.00 - 4,800,000.00 -

580,833.33 ? 1,469,166.67

3,541.67 ? 21,458.33

3,541.67 ? 21,458.33

8,500.00 ? 21,500.00

596,416.67 170,416.67 1,533,583.33 (170,416.67)

5,740,797.81 3,109,797.81 75,439,202.19 (3,109,797.81)