Bank Reconciliation A local bank began charging $2.50 each month for returning cancelled checks. The bank also has an $8.00 maintenance fee if a checking account slips below $750. Donna Sands likes to have copies of her cancelled checks for preparing for income tax. She has received her bank statement with a balance of $535.8
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Bank fees are squeezing customers according to an article in The Record (Hackensack,NJ) dated April 20, 2006. Banks are having a hard time making money lending, so many are charging more and higher fees. Meanwhile, interest paid on interest-bearing checking accounts remains low.Kayla Siska received her bank statement from the Co
Can you help me get started with this assignment? C1. Assume that you work for Bank of North America and that you have made a $20 million loan to Kinkus Publishing, which must be repaid at the end of this year. Kinkus has undertaken a major expansion, ant eh value of its assets when the loan comes due is expected to be eithe
What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating in internal control governing revenue recognition and cash accounting? What assertions are made about classes of transactions and events in the revenue and collection cycle?
Adcock Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank $26,746 Add: Deposits in transit
Adjusting Entries: Interest receivable at 1/1/06 was $5,000. During 2006 cash received from debtors for interest on outstanding notes receivable amounted to $6,000. The 2006 income statement showed interest revenue in the amount of $8,900. You are to provide the missing adjusting entry that must have been made, assuming reversin
The Mesa Bank is offering your company the use of their lockbox services. They estimate that you can reduce your average mail time by 2 days and they can save you a combined clearing and processing time of 1.5 days by putting the checks into the clearing system sooner. The firm receives 320 checks a day on average written for $2
What does a social performance audit involve?
The three primary accounting problems associated with accounts receivable are 1) _________ 2) __________ and 3)_________ of accounts receivable. A finance company or bank that purchases receivables from business is known as a ______________ Equipment with an invoice price of $20,000 was purchased and freight costs were $90
The IRS audited the tax returns of Darryl Strawberry, a former major league outfielder. It contended that, between 1986 and 1990, Strawberry earned $422,250 for autograph signings, appearances, and product endorsements, but he reported only $59,685 of income. Strawberry attributed the shortfall to his receipt of cash for autogra
I need assistance in performing a strategic audit, namely analyzing all strategy aspects of Hewlett-Packard, Inc. It has experienced both success and hard times and CEO changes in recent times. Please explain the following: ? Organization mission and vision ? Products and brands ? Organizational stakeholders ? CEO and exe
Use one of the Internet browsers to search for the following terms: Audit evidence, Electronic data interchange and image processing systems. Tell us what each means and give us an example.
Can you help me start the following case study? I:1-49 John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has questioned the following deduction items on Mr. Gemstone's tax return for the year under review: - A $10,000 loss deduction on the rental of his beach cottage. - A $20,000 charitable
Tax Research Question and Procedures for rental of beach cottage, value of the donation of art, and the cattle-breeding ranch loss.
I:1‑49 - No word requirement. John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has questioned the following deduction items on Mr. Gemstone's tax return for the year under review: * A $10,000 loss deduction on the rental of his beach cottage. * A $20,000 charitable contribu
P14-8 Accounts receivable changes with bad debts A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, sales are forecast to increas
J&S Snowmobile manufactures and sales snowmobiles throughout the country. J & S has determined that through the establishment of local collection centers around the country, they can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to them that
When sales increase, and terms are extended to customers, accounts receivable increases. Of course when purchasing goods from suppliers, payables increase. What makes the cash account drop when there are both receivables and payables on the books during the increased sales activity?
I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions. What is an audit committee? What is the function of an audit committee? How does an audit committee w/in your organization, or an organization that you are familiar with go about insuring compliance w
Peck Co. reports a taxable and pretax financial loss of $400,000 for 2008. Peck's taxable and pretax financial income and tax rates for the last two years were: 2006..$400,000...30% 2007...$400,000...35% The amount that Peck should report as an income tax refund receivable in 2008, assuming that it uses the carryback prov
How are bank companies handling the economic down turn? Are they still achieving their profit goals?
Calculating: accounts receivable balance, bad debt expense, accounts receivables written off and more...
Can you help me get started with this assignment? The sales, all on account, of Pins Company in Year 6, its first year of operations, were $700,000. Collections totaled $500,000. On December 31, Year 6, Pins Company estimated that 2 percent of all sales would probably be uncollectible. On that date, Pins Company wrote off spe
I would need answers to the two questions and not a copy from any web sites 1. Why do certain accounts have to be audited 100 percent? 2. Is any component of audit risk within the control of the auditor? Explain
Why is transparency important in a market-based financial system? Why is it less important in a bank-based system?
The media are one of the most powerful sources of communication and has the ability to influence our behaviors and thought processes. Choose an advertisement that you feel is deceptive or manipulative in some way. Explain the product and why you consider the advertisement to be unethical.
A new client just deposited $300,000 in a corporate checking account. Idle money means missing out on profits, so we want to put the additional funds to good use as soon as possible. We've identified three potential options for using the additional funds?you should evaluate the profitability and risk implications of each of the
If a check is filled out completely and endorsed, will a bank cash it without the account holders name and address located at the top left hand corner of the check? I was just wondering if it is a valid check with the account holders information listed on it.
Analog Computers needs to borrow $800,000 from the Midland Bank. The bank requires a 15% compensating balance. How much money will Analog need to borrow in order to end up with $800,000 spendable cash?
Visit the AICPA website at the URL below. http://www.aicpa.org/Professional+Resources/Accounting+and+Auditing/Audit+and+Attest+Standards/Authoritative+Standards+and+Related+Guidance+for+Non-Issuers/auditing_standards.htm Print a copy of SAS 106 Audit Evidence. Write a report summarizing SAS 106. Your report should ad
CASE STUDY PROBLEM John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has questioned the following deduction items on Mr. Gemstone's tax return for the year under review: ? A $10,000 loss deduction on the rental of his beach cottage. ? A $20,000 charitable contribution deduction for the do
Please see attached file: Average collection period for accounts receivable Incremental investment in receivables Incremental charge to pre-tax profit.