1. Would it be considered unusual to find debits to fixed assets coming
from a journal entry source rather than a purchase journal? Explain.
2.
Would it be normal to find entries to accumulated depreciation and
depreciation expense to come from a journal entry source rather than
another source?
3. Assume you were auditing FedEx and in your sample of
debits to fixed assets, you find an entry for $500,000 with the
following notation: "Capitalization of line capacity per CFO, amounts
were originally in corrected recorded as an expense." Explain what you
would do to complete the audit of this item. What evidence would you
need to see to either corroborate or question the entry?
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