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.
Decide whether, in the event of an economic slowdown in the U.S., Bank of America's overseas revenue generation might serve to shelter the parent from slow or negative growth in the U.S. market. Explain and support your opinion.
Many companies have an internal audit staff to assess the adequacy of internal controls. Do you think your organization has an internal audit function? Or do you think your organization has outsourced this function to an external audit firm? Please include an explanation to support your answer.
Can you help me with the problems below? Exercise 9-6: Prepare journal entries to record these selected transactions for Vitalo Company. Nov. 1 Accepted a $6,000, 180-day, 8% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end a
Research The Citigroup (http://www.citigroup.com/citi/homepage). Strategic Audit Analysis of Strategic Factors. Since you are aware that your analysis of strategic factors or SFAS (Strategic Factor Analysis Summary) is based on IFAS and EFAS tables, and since we will need to understand your choices, you are required to submi
What types of selling and administrative expenses do you think are recorded by bank organization?
What are the primary reasons for audit failures and the potential scandals that occur when problems are brought to light?
Please provide instructions on how to process the journal entries. A sample template of the link to a similar problem from the solution library would be helpful. Fundamental Accounting Principals, 18th Edition Wild, Larson, Chiappetta, McGraw-Hill Irwin Problem 9-5A: Analyzing and journalizing notes receivable transac
Anth Company has significant amounts of trade accounts receivable. Anth uses the allowance method to estimate bad debts instead of the specific write-off method. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected. Anth also has
7. Marcus Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, 9/30 $11,000 Note receivable collected by bank 6,000 Outstanding checks 9,000 Deposits-in-transit 4,500 Bank service charge 75 NSF 1,200 Using the above information, determine the ca
5. Jones Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Jones Company issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Jones Company's customers in the amount of $300 was also returned marked "NSF." The amo
When assessing the sampling risk, the risk of incorrect rejection and the risk of assessing control risk too high relate to the- A. Efficiency of the audit. B. Effectiveness of the audit. C. Selection of the sample. D. Audit quality controls.
Please help with the following problem. Please provide a step by step calculation. Certain information relative to the 2004 operations of Ross Co. follows: Accounts receivable, January 1, 2004 $22,000 Accounts receivable collected during 2004 39,000 Cash sales during 2004 12,000 Inventory, January 1, 2004
E9-2 The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $28,000. Instructions (a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Elburn deter
Gray County Bank agrees to lend the Starkwood Building Company $100,000 on January 1. Starkwood Building Company signs a $100,000, 9%, 9-month note. The entry made by Starkwood Building Company on January 1 to record the proceeds and issuance of the note is: _________. Interest Expense 9,000 Cash 91,000 Notes Pay
When a business sells its accounts receivable to a financial institution, is it called, line of credit,cash equivalent, factoring, or market to market?
I need help in determining what amounts I need to use for the adjusting entries for bad debts and also how to journalize those when funds are collected later on as well. Presented below is an aging schedule for Lewis Company. Customer Total: Not Yet Due: Number of Days Past Due 1-30 31-60 61-90 Over 90
4. What should the Audit Committee of the Board of Director do to ensure auditor independence?
The World Bank is currently advising newly industrialized countries on how to encourage growth and they have asked for your help. Using the internet and other resources, research the factors behind economic growth in Hong Kong and Singapore. Which of these methods of encouraging growth would you suggest to a newly industriali
Pat, I am still without power since the storm and I am having trouble with any research. All I have really is the text book and it is not that great. I finally found a friend out of state to get this typed for me. Is there anyway you might can help with this assignment? Deliverable length is 2 pages. AICPA professional
Research Procter and Gamble (http://www.pg.com/en_US/index.shtml). Complete the following sections of a Strategic Audit: 1. Analysis of Strategic Factors (based on a) IFAS and b) EFAS tables which I would also like to see in a spreadsheet) 2. Strategic Alternatives 3. Recommended Strategy (analyze economic, socio-cul
Before year end adjusting entries, Bass Company's account balances at December 31, 2007, for accounts receivable and the related allowance for uncollectible accounts were $600,000 and $45,000, respectively. An aging of accounts receivable indicated that $62,500 of the December 31 receivables are expected to be uncollectible. The
I need a few paragraphs that explain the difference between State Charter Bank and Federal Charter Bank.
To assess your company's liability for the external audit, you must discuss with your team the following topics: What is the relationship of risk and materiality? How are risk and materiality related? How are risk and materiality integrated into the audit process? What is an example of a statement that includes both ri
Company A sells on terms of 3/10, net 30. Total sales for the year are 912,500; 40 percent of the customers pay on the 10th day and take discounts, while the other 60 percent pay, on average, 40 days after their purchases. 1) what is the days' outstanding sales? 2) What is the average amount of receivables? 3) What i
Details: The following situations have caused you to become concerned about the quality of the upcoming external audit: The CPA firm that has been contracted by CSSC management has only been in business 2 years and is a small firm with mostly young inexperienced auditors. You have just been advised that the preaudit plann
T-F 1. S corporations who chose to be taxable C corporations may have to pay a 35 percent tax on certain built-in gains. 2. Revenue agents who audit S corporations are on the alert for shareholder/employee salaries that are unreasonably low. 3. An S corporation can use any taxable year it wishes. 4. A taxable C c
Create a memo that is on a business or professional level. I have the definitions needed and I know the relationship between the three. I have attached my definitions and the scenario of the company In preparation for the CSSC 2005 year-end audit, you want to have a complete understanding of the relationship between acco
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