In December of 2016,XL Computer's Internal Auditors Discovered That Office

question 74

Essay

In December of 2016,XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2014.The asset had an expected life of 10 years with no residual value.XL would have recorded a half year of depreciation in 2014.
Required:
Prepare the necessary correcting entry that would be made in 2016 (ignore income taxes),and the entry to record depreciation for 2016.

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Definitions:

Exponentiation

An arithmetical process that uses two numbers, known as the base and the exponent, in which the base is elevated to the power indicated by the exponent.

Multiplication

A mathematical operation that calculates the total of one number added to itself a specified number of times.

Equivalent Fraction

Fractions that, although they have different numerators and denominators, represent the same part of a whole.

Division

A mathematical operation involving the process of dividing one number by another to find how many times the divisor fits into the dividend.