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Tiny Company: Compute the balance of accounts receivable

The following information from Tiny Company's first year of operations is to be used in testing the accuracy of Accounts Receivable. The December 31, 2008, balance is $28,300. (a) Collections from customers, $48,000. (b) Merchandise purchased, $74,000. (c) Ending merchandise inventory, $31,500. (d) Goods sell at 60% a

What are the Transaction Audit Objectives?

How do you know what would Transaction Audit Objectives be for the following key Controls 1.Independent reconciliation of the monthly bank statements 2.Use of prenumbered checks, properly accounted for 3.Use of prenumbered receiving reports, properly accounted for. 4.Internal verification of document package before c

Problem Solution: USA World Bank (MBA 510)

Problem Solution: USA World Bank. Includes material for the following sections: - Issue and Opportunity Identification - Stakeholder Perspectives/Ethical Dilemmas - Describe the "End-State" Vision - Identify the Alternatives and Benchmarking Validation - And more... Need help with your own paper? This is the solution

How to Prepare a Bank Reconciliation and Record Adjustment for Clark Company

8-4A - Prepare a bank reconciliation and record adjustments Use the spreadsheet in Appendix B to complete Problem 8-4A. Be sure to use the tabs labeled SP08-04A and Given P08-04A The following information is available to reconcile Clark Company's book balance of cash with bank statement cash balance as of July 31, 2005:

Cost of trade credit Grunewald Industries sells on terms of 2/10, net 40. Gross Sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th and took discounts. What are the nominal and effective costs of trade credit to Grunewalds's non discount customers? (Hint: Calculate sales/day based on a 365-day year;then get average receivables of discount customers;then find the DSO for the non discount customers.)

Grunewald Industries sells on terms of 2/10, net 40. Gross Sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th and took discounts. What are the nominal and effective costs of trade credit to Grunewalds's non discount customers? (Hint: Calculate sales/day b

Audit: Division of Duties at Meridian Paint for best internal controls

The division of the duties set forth below is meant to provide the best possible controls for the Meridian Paint Company, a small wholesale store. You are to divide the duties among Robert Smith, James Cooper, and Bill Miller by placing an "X" in the appropriate column under the name of the individual who will be assigned each

A Financial Analysis of SunTrust Bank

This file contains a formatted MS Word and MS Excel file, which conducts a thorough financial analysis of SunTrust Bank. From the information contained in these postings, company managers, accounting personnel, investors, lenders and other interested parties can ascertain whether an organization (in this case, SunTrust Bank)

Uncollectible Accounts and Bad Debts Expense

Leland Company has accounts receivable of $98,100 at March 31. An analysis of the accounts shows the following. Month of Sale Balance, March 31 March $ 65,000 February 17,600 January 8,500 Prior to January 7,000 $ 98,100 Credit t

Corporate Governance System: compare market-centered to bank-centered systems

It is said that the United States has a market centered corporate governance system, wherein as Germany has a bank centered system. What does the two designations mean? How would you compare the corporate governance systems of the United States and Germany. How did both countries come to have the systems they have? and what a

Audit Trail and Auditors

Please help with the following problem. What is the meaning of audit trail, and why is it necessary for the audit process?

Review of the working papers on the audit of a new client

Frank is a technical manager of a CPA firm. Recently Frank was requested by his firm to conduct a review of the working papers on the audit of a new client, Alpha Electronics Limited ("Alpha"), a company engaging in the manufacturing and trading of computer accessories and devices, and to report his findings to the partner in c

External Audit Concerns

Please help so that I can complete the following assignment: The following situations have caused you to become concerned about the quality of an upcoming external audit: 1-The audit will not begin until February, 2006, after the books have been closed, so the external auditors will not be able to confirm the accounts rec

Suppose you are consulting for a VP branch bank.

Suppose you are consulting for a VP branch bank. You notice that several branches have consistently low customers service ratings even though there are no apparent differences in resources or staff characteristics. Describe an active inquiry process in one of these branches that might help to overcome these problems.

Prepare a bank reconciliation - Haverman Company

Please see attached PDF. Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below. Cash in Bank Per Books Per Bank Balance, July 1 $17,600 $16,800 July receipts 81,400 July credits 82,470 July

A. Suppose that the bank offers to run the lock box for a $20,000 compensating balance. Is the lock box worthwhile? b. Suppose that the bank offers to run the lock box for a fee of $.10 per check cleared instead of a compensating balance. What must the average check size be for the fee alternative to be less costly?

13. The financial manager of JAC Cosmetics is considering opening a lock box in Pittsburgh. Checks cleared through the lock box will amount to $300,000 per month. The lock box will make cash available to the company three days earlier than is currently the case. a. Suppose that the bank offers to run the lock box for a $20,00

Hemingway Company

Hemingway Company had the following transactions for the year ended December 31,2006. July 1 Received a $2,000, three-month 10% promissory note from Damon Runyon in settlement of an open account. Aug. 1 Received a $1,000, three-month 12% note receivable from Carl Sandburg for cash borrowed by Sandburg. Oct. 1 Received n

1. Suppose that the bank offers to run the lockbox for a $20,000 compensating balance. Is the lockbox worthwhile? 2. Suppose that the bank offers to run the lockbox for a fee of $0.10 per check cleared instead of a compensating balance. What must the average check size be for the fee alternative to be less costly?

The financial manager of JAC Cosmetics is considering opening a lockbox in Pittsburgh. Checks cleared through the lockbox will amount to $300,000 per month. The lockbox will make cash available to the company three days earlier than is currently the case. 1. Suppose that the bank offers to run the lockbox for a $20,000 compen

Bank Reconciliation - Dogg Co.

2. In preparing its May 31, 2004 bank reconciliation, Dogg Co. has the following information available: Balance per bank statement, 5/31/04 $27,000 Deposit in transit, 5/31/04 5,400 Outstanding checks, 5/31/04 4,900 Note collected

Auditor's Opinion for an Investment Club

You have been asked to prepare a brief presentation on the nature and purpose of the auditors' opinion for your investment club. The club members would like your presentation to answer these questions: a. How is the "scope" of an audit determined? What role should the auditors' fee play in setting the scope? b. How can the a

Audit Evidence: Evidence and Reliability

During the course of an audit, the auditor examines a wide variety of documentation. Listed below are some forms of documentary evidence and the sources from which they are obtained. 1. Bank statement sent directly to the auditor by the bank. 2. Creditor monthly statement obtained from client's files. 3. Vouchers in client'

Leng Xiong is unable to reconcile the bank balance as of January 31

E7-6 Leng Xiong is unable to reconcile the bank balance as of January 31, Leng's reconciliation is shown here: Cash Balance per bank = $3,660.20 Add: NSF check = 370.00 Less Bank Service Charge = 25.00 Adjusted Bank Balance per bank = $4,005.20 Cash Balance per books =

Auditors Giving Value to Clients

1. Giving value to clients is absolutely essential to especially auditors. Your client, a public company in the jewelry business, is looking to you as their consultant, for suggestions to improve their profit. 2. Inventory Procedures Using Computer-Assisted Audit Tools and Techniques : In your discussion Explain the pro

Forecast accounts receivable

Accounts receivable are $45,000 and are directly proportional to total sales. The sales forecast for next year is $125,000, which represents a 5% growth over the current year. The forecast accounts receivable would be: