1. Would it be considered unusal to find debits to fixedassets coming from a journal entry source rather than a purchasejournal? Explain.
2. Would it be normal to find entried to accumulatedepreciation and depreciation expense to come from a journal entrysource rather than another source?
3. Assume you were auditing FedEx and in your sample of debitsto fixed assets, you find an entry for $500,000 with the followingnotation: "Capitalization of line capacity per CFO, amounts wereoriginally incorrected 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 orquestion the entry?