On December 31,2009,a Company Forgot to Record $7,000 of Depreciation

question 78

Essay

On December 31,2009,a company forgot to record $7,000 of depreciation on office equipment.What would be the effect on the assets,net income and equity when it comes to the 2009 financial statements?

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Definitions:

Interest Earned

The income received from lending money or depositing funds into interest-bearing accounts.

Compounded Monthly

The process of applying interest on both the initial principal and the accumulated interest each month.

Compounded Annually

A method where interest is added to the principal sum at the end of each year, compounding the amount for the next period.

Semi-Annually

Occurring twice a year or every six months, often used in the context of payments or interest calculations.