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Q: PROBLEM #3: A firm is charged by Php 150.00 per ton for hauling its raw materials by a trucking comp...
A: a. Case 1: PhP 150/ton, 40 tons/day, 300days/year Total cost = PhP(150*40*300) a year = P1,800,000 a...
Q: rane Company has a machine with a cost of $642000 which also is its fair value on the date the machi...
A: Lease is an agreement between two parties, in which one is Lessor and other is Lessee. Lessor provid...
Q: -On December 30, 20x8, Rafferty Corp. leased equipment. Annual lease payments of P20,000 are due Dec...
A: Given , Initial lease obligation = P135,000 Annual lease payments = P20,000 Lease obli...
Q: XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the...
A: Book value per share = (No. of shares x par value per share + share premium) / no. of share = (50000...
Q: Karen, Monique, Maya and Clarke are friends. They decided to start a business and they are trying to...
A: Partnership is s type of business where the partners agrees to run business together and share profi...
Q: Assume that Telca Co. uses periodic inventory system. The following are the transactions that occurr...
A: There are three golden rules in accounting for recording the transaction : Debit what comes in , C...
Q: MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The...
A: Paid up capital = Number of Shares upon which shares are fully paid x Called Up amount per share
Q: Luminous Company provided the following information at current year-end: Fini...
A: Introduction: Ending inventory: The inventory which left over after the sales. Current year ending i...
Q: XYZ Company is doing business for many years. The company had opening balance of Retained earnings o...
A: Retained earnings is the amount of earnings that is attributable or distributable to the shareholder...
Q: The owners are desirous of comparing serval financial transactions and possible outcomes to assist i...
A: As per our protocol we provide solutions to the first three sub-parts only if the student has not as...
Q: Which type of business has ownership interests that cannot be transferred to other parties without s...
A: In both corporation and limited liability companies the ownership interest cannot be transferred to ...
Q: ABC SAOG has issued 50,000 equity shares OMR 0.500 per share. The company decided to make a bonus is...
A: Solution:- Introduction:- The following basic information as follows:- ABC SAOG has issued 50,000 eq...
Q: Variable Cost Fixed Cost
A: Variable cost are those cost which change over a time with production of Goods Fixed cost are those ...
Q: HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020? Question for Visayas Company: • Compute the Impairment...
A: 1. Visayas Company: Impairment loss of CGU= (5000000+3000000+1000000+1000000)-7,200,000 = 2800000 ...
Q: A company absorbs factory overheads rate based on production units. Closing inventories of finished ...
A: Calculation of closing units on hand at the end of the month:::: Let X be the number of units produc...
Q: Use the table provided below showing rooms available, rooms sold and rooms revenue for 7 properties ...
A: Calculation of market share is done by dividing the relevant particular of subject hotel with the to...
Q: Requlred: a. Prepare journal entries to record the flow of costs for operations during May. b. Calcu...
A: Overheads are the indirect costs related to production and manufacturing of goods. These costs can n...
Q: . Dina placed Php 18,000 in a 240-day term deposit earning 8.5% per annum. How much will the bank pa...
A: Interest means the extra amount which we received because of investment made and will be paid in cas...
Q: Timberlake Company planned for a production and sales volume of 12,000 units. However, the company a...
A: Calculation of sales volume variance:::: Budgeted units is::12000 units.. But actually sold units is...
Q: 2. Ending owner s equity amounted to P70.000 Additional investments during the year amounted to P30,...
A: Formula: Ending capital = Beginning capital +Additional investments + Net income - withdrawals
Q: 11. Trump Incorporated reported the following data for the year 2019, 2020 and 2021 2019 2020 2021 B...
A: In 2019, journal entry for loss on inventory write down will be made like this:- Allowance for inven...
Q: The bonds which are issued at less than the market rate and at the maturity date the carrying value ...
A: The bonds are issued at par, premium or discount depending on the market rate of bonds payable.
Q: dividends
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the r...
Q: A machine costing 720,000 is estimated to have a book value of 40,545.73 when retired at the end of ...
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or cha...
Q: Why is it critical for employers to properly arrange their employees' taxes
A: Introduction : Withholding taxes are collected and sent to the Internal Revenue Service (IRS) by bo...
Q: Do you know what the processes are for closing an entry
A: This question tells about the processes are for closing an entry
Q: When an entity has a continuing policy of guaranteeing new products against defects for three years,...
A: Liability arising from the warranty which will be due within a year is reported under current liabil...
Q: rive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100...
A: Solution: Journal entries to record the transactions are as under:
Q: . Which form of bank reconciliations statement is prepared by most of the companies? a. Reconciles f...
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with...
Q: Nonchalant Company owned three investment propertien with the following details: Initial Fair value ...
A: Guideline: “Since you have asked multiple question, we will solve the first question for you. If you...
Q: company with an efficient way to handle small payments of cash
A: Option b is wrong because bank accounts usually handle both large and small payments. Option c is wr...
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tap...
A: Formula: The activity rate for the scheduling activity cost pool = Scheduling activity cost / Total ...
Q: Following information is related to the financial results of Al Mamari Automobile Spare Parts LLC: P...
A: Gross profit means the difference between the sale revenue and cost of production. Sale means the di...
Q: Find the rate that a 200-room (150 singles and 50 doubles) hotel costing $30 million should charge f...
A: Rule of Thumb states that average room rate should be equal to $1 for $1000 of construction cost T...
Q: Bookmoto Marketing has the following transactions for the month of March, 200x: Mar 2 - Sold merchan...
A: The journal entries are prepared to record daily transactions of the business.
Q: hich one of the following transactions can immediately improve the Debt to Total Assets Ratio? A...
A: Ratio analysis means where different ratio of various years of years companies has been compared and...
Q: Mr. Saeed started his business with cash Rs. 65,000, Furniture Rs. 20,000 Building Rs. 1,00,000 on I...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: The financial statements do not provide information about an entity’s __________. a. None of the opt...
A: The financial statements provide various information about an entity’s equity, liabilities and asset...
Q: receivables
A: There are two methods in accounting for uncollectible receivable (1) Allowance method (2) Written o...
Q: The shareholders' equity of Janet Corporation at the end of 2018 and 2017. are as follows: 2018 P1,0...
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the unanswere...
Q: Waterway Shutters has the following inventory information. Nov. 1 Inventory 50 units@ $6.00 8 Purcha...
A: Introduction: LIFO: LIFO stands for Last in First out. Which means last received inventory to be sol...
Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on Jan...
A: Solution: Face value of bond = P5,000,000 Issue price of bond = P4,695,000
Q: Journal entries based on perpetual inventory: Sales of 5 products on credit to the customer at a pr...
A: Credit sales of $50. The cost of goods sold is not mentioned.
Q: The minimum subscription norm stated by Oman commercial company law is: a. 90% b. 100% c. 80% d. 10%
A: Answer 90% Commercial Company Law in Oman the minimum subscription of shares that if any company i...
Q: Michael's Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking...
A: Since there are multi sub-parts, we will solve first three for you. To get the remaining sub-parts s...
Q: ABC Company accepted a P400,000 face value, 6-month, 10 percent note dated May 15 from a customer. O...
A: The discounted note receivable is getting money from bank against customers' note receivable.
Q: Which of the following is False in regards to Share premium account? a. It will be shown under the s...
A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND T...
Q: : On January 1, 20x7, Babson, Inc., leased two automobiles for executive use. The lease requires Bab...
A: 1. Installment amount = $13,000 2. No. Of installments = 5 P. V factor for 0-4 years = 1+ 0.9174+0.8...
Q: Which account is debited if a client pays 5,000 by check? A cash of 875 is taken from the bank accou...
A: Account Entry will be made for client pays 5,000 by check: Dr. Cash 5,000 ...
Q: During the year, the total fixed costs amounted to P60,000 when the contribution margin is 40% of sa...
A: Solution Fixed cost ratio to sales = contribution margin ratio - operating income % of sales = 40% -...
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- The auditors have determined that each of the following objectives will be a part of the audit of SSC Corporation. While several procedures will ordinarily address an audit objective, select the procedure most directly related to the audit objective. Each procedure may be used once, more than once, or not at all. 1. All receivables that should be recorded are recorded as of year-end. 2. Recorded receivables are at appropriate net realizable values. 3. Recorded receivables exist. 4. The client has rights to recorded year-end receivables. 5. The presentation and disclosure of receivables are adequate. Trace a sample of sales invoiced from late in December to the sales journal and to postings in accounts receivable and sales amounts. Review the aged trial balance for significant past due accounts. Review board of director minutes and underlying contracts and sales terms with customers. Vouch year-end accounts…Assume that a continuing audit client has recorded Accounts Receivable and Equipment both in the amount of $1,000,000. In a typical audit, which account would take more time to audit?You are an employee of Dick and Associates’ Auditing Firm. The company take on an engagement to audit Full Bright Company Limited. The engagement was divided into segments such as receivables, payables, cash and bank, inventories and non- current assets and each segment is headed by an audit senior. The audited of the non -current assets was assigned to you. After reviewing the financial statement, you re-cognized that non-current assets values 500 million and current assets values 400 million. A machine values 250 million was acquired by Full Bright Co. Ltd during the period under audit. You also noticed that the Depreciation on some of the assets were not calculated properly. The company did not keep a fixed asset registry. NB. The company has no Goodwill. a) Discuss at least four (4) audit procedures you would perform in completing your audit on the non-current assets. b)…
- Field, CPA, is auditing the financial statements of MillerMailorder, Inc. (MMI). Field has compiled a list of possible inherentand fraud risks in the revenue cycle that may result in the misstatementof MMI’s financial statements and a corresponding list ofinternal controls, which, if properly designed and implemented,could assist MMI in preventing or detecting material misstatements.For each risk numbered 1 through 15 in column 1, select one internalcontrol from column 2 (labeled a. through t.), which, if properlydesigned and implemented, most likely could assist MMI in preventingor detecting material misstatements. Internal controls can beselected for more than one risk.You are the audit partner of ‘Power Auditors’ and you are auditing your client ‘FreefallIncorporated’.After finishing all the tests on the client’s financial information you determine that there is amaterial misstatement in the accounts receivable account of your client. This misstatementhas also caused the sales revenue account to be materially misstated. You have notified theclient about the misstatement but as of reporting date, client has not made any corrections.You also found misstatements in the fixed assets and accounts payable accounts, but theyare not material as per your assessment. You found no other misstatements in the otheraccounts.In addition to this, you also notice that the client has a large amount of debt which will bedue next year. As the business has suffered a loss this year and does not have enough cashflow at the end of the year to pay the debt next year, the client will need to secure someform of refinancing next year. Without this refinancing, there is a…Elizabeth Johnson, CPA, has completed the audit of notespayable and other liabilities for Valley River Electrical Services and now plans to auditcontingent liabilities and commitments.a. Distinguish between contingent liabilities and commitments and explain why bothare important in an audit.b. Identify three useful audit procedures for uncovering contingent liabilities thatJohnson will likely perform in the normal conduct of the audit, even if she had noresponsibility for uncovering contingencies.c. Identify three other procedures Johnson is likely to perform specifically for the purpose of identifying undisclosed contingencies to help her obtain evidence about thecompleteness presentation and disclosure objective.
- Alexander Robinson, a junior auditor working for Big One Accounting Firm. He is included in the audit team engaging in the audit the Financial Reports of Complicated Ltd., a listed company on AST. When evaluating audit results for assets in the audit, Alexander has set the preliminary judgment about materiality to be $67,000. He then allocated the materiality to all the asset accounts. The account balances, performance materiality and estimated overstatements in the accounts are shown below: Account Account balance Performance materiality Estimate of total overstatements Cash 60,000 6,000 5,500 Account receivable 1,300,000 20,000 500,000? Inventory 2,100,000 60,000 45,000 Other assets 360,000 24,000 23,000 Total 4,090,000 110,000 Alexander has chosen a sample of $500,000 in Accounts Receivable. He tested it and uncovered $6000 in overstatement. He then checked on the individual accounts and all accounts in the total assets against the allocated performance…Various Completion Matters. For each of the following independent situations, describe the most appropriate course of action that the auditors should take.a. Drew Allison is conducting the audit of Anderson Inc. as of December 31, 2017. At the beginning of the evidence gathering, Allison becomes aware that one of Anderson’s major customers (Jones) is experiencing significant financial difficulties. Jones normally accounts for 5 percent of Anderson’s net sales. After performing the necessary procedures, Allison believes that $2.8 million of Jones’s receivable balance will ultimately become uncollectible. Allison further believes this amount is material to Anderson’s financial condition and results of operations.b. Nagan Carmelo is completing the December 31, 2017, audit of Nugget Company. As part of the final procedures, Carmelo has requested representations from Nugget’s management regarding their assertion as to the fairness of the financial statements and other important matters…Johnny Kang, CPA, is the auditor of the Felix Lee Ltd. Johnny Kang, CPA is considering the audit work to be performed in the accounts payable area for the current year’s engagement. The prior year papers show that confirmation requests were mailed to one hundred of the client’s one thousand suppliers. The selected suppliers were based on Johnny Kang’s sampling, which was designed to select high value items in the accounts payable balance. Johnny Kang and Felix Lee Ltd.’s accountant, DY Anderson spent substantial number of hours resolving relatively minor differences between the confirmation replies and accounting records. Alternative audit procedures were used for those suppliers who did not respond to the confirmation requests. Required:1. Identify the accounts payable assertions that Johnny Kang must consider in determining the substantive tests to be followed. 2. Identify situations for which Johnny Kang should use accounts payable confirmations and discuss whether he is required to…
- Auditors make materiality judgments during the planning/risk assessment phase of the audit to be sure they ultimatelygather sufficient evidence during the audit to provide reasonableassurance that the financial statements are free of material misstatements.The lower the materiality threshold that an auditorhas for an account balance, the more the evidence that the auditormust collect. Auditors often use quantitative benchmarks such as 1% of total assets or 5% of net income to determine whethermisstatements materially affect the financial statements, but ultimatelyit is an auditor’s individual professional judgment as towhether a given misstatement is or is not considered material.a. What is the relationship between the level of riskiness of theclient and the level of misstatement in an account balancethat an auditor would consider material? For example,assume that Client A has weaker controls over accountsreceivable compared to Client B (therefore, Client A is riskierthan Client B).…In an audit sampling application, an auditora. Performs procedures on all items in a balance and makes a conclusion about the entirebalance.b. Performs procedures on less than 100 percent of the items in a balance and formulates aconclusion about the entire balance.c. Performs procedures on less than 100 percent of the items in a class of transactions tobecome familiar with the client’s accounting system.d. Performs analytical procedures on the client’s unaudited financial statements when planning the audit.You are evaluating audit results for assets in the audit ofRoberts Manufacturing. You set the preliminary judgment about materiality at $50,000.The account balances, performance materiality, and estimated overstatements in theaccounts are shown next.Account Performance Estimate of TotalAccount Balance Materiality OverstatementsCash $ 50,000 $ 5,000 $ 1,000Accounts receivable 1,200,000 30,000 20,000Inventory 2,500,000 50,000 ?Other assets 250,000 15,000 12,000Total $4,000,000 $100,000 ? a. Assume you tested inventory amounts totaling $1,000,000 and found $10,000 inoverstatements. Ignoring sampling risk, what is your estimate of the total misstatement in inventory?b. Based on the audit of the assets accounts and ignoring other accounts, are the overallfinancial statements acceptable? Explain.c. What do you believe the auditor should do in the circumstances?