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:

Denver Developmental Screening Test

Screening test given to children 1 month to 6 years old to determine whether they are developing normally.

Average

The statistical measure representing the central or typical value in a set of data, calculated as the sum of all values divided by the number of values.

First Sense

typically refers to touch, considered by many as the initial sense developed in utero and critical for early human development.

Acute

refers to conditions or phenomena that are severe in degree but of short duration.