The Following Information Is Available for Xavier Corporation The Company Accountant in Preparing Financial Statements for the Year

question 137

Essay

The following information is available for Xavier Corporation: $\begin{array}{llr} \text { Retained Earnings, December 31, 2016 } &\$1,500,000\\ \text { Net Income for the vear ended December 31, 2017 } &\$200,000\\\end{array}$
The company accountant in preparing financial statements for the year ending December 31 2017 has discovered the following information:
The company's previous bookkeeper who has been fired had recorded depreciation expense on equipment in 2015 and 2016 using the double-declining-balance method of depreciation. The bookkeeper neglected to use the straight-line method of depreciation which is the company's policy. The cumulative effects of the error on prior years was $25000 ignoring income taxes. Depreciation was computed by the straight-line method in 2017.
Instructions
(a) Prepare the entry for the prior period adjustment.
(b) Prepare the retained earnings statement for 2017.

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Definitions:

Prezygotic

Refers to mechanisms that prevent individuals of different species or populations from mating or fertilizing eggs before the formation of a zygote.

Gene Flow

The transfer of genetic material from one population to another, which can alter the composition of gene pools and drive evolution.

Phylogenetic Species Concept

A definition of species emphasizing the smallest group of individuals that share a common ancestor and thus form one branch on the tree of life.

Metapopulations

A group of spatially separated populations of the same species which interact at some level, often considered in conservation biology and disease dynamics.