In December of 2009, XL Computer's Internal Auditors Discovered That

question 31

Essay

In December of 2009, XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2007. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2007.
Required:
Prepare the necessary correcting entry that would be made in 2009 (ignore income taxes), and the entry to record depreciation for 2009.

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Definitions:

Temperate Desert

A biome characterized by low precipitation, moderate temperatures compared to other deserts, and specific vegetation adapted to these conditions.

Rain Shadow

A dry area on the leeward side of a mountainous area, where less rain falls due to the obstruction of precipitation by the mountains.

Ecological Communities

Groups of interacting species that live in the same area and are interconnected through various ecological processes.

Biome

A large ecological area on the Earth's surface, with flora and fauna adapting to its climate and geography, such as forests, deserts, and tundras.