At each calendar year-end mazie supply co. uses the percent of account receivable method to estimate bad debits. On December31,2013 it has outstanding accounts receivable of 55000 and estimated that 2% will be uncollectible . prepare the adjusting entry to record bad credit expense for the year 2013 under the assumption that the
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Which is more important to effective corporate governance: an audit committee or a compensation committee? Why? Explain your answer.
You have received the bank statement for your company's account and need to reconcile it with your cash T-account. Your records show an ending balance for the month of $12,722.40 while the bank's records show an ending balance of $12,367.16. The bank charged $8 in service fees and paid $26.05 in interest. All but three checks w
Please review the following videos and a summary. http://www.youtube.com/watch?v=DzUpsVt-kIE&list=FLRIzS13eyYurKB4T7ai8DLw&index=2&feature=plpp_video and http://www.youtube.com/watch?v=7xni1X9cO28&list=FLRIzS13eyYurKB4T7ai8DLw&index=3&feature=plpp_video.
Take a good look at the bank you use, not from the point of view of a customer but from the point of view of a potential investor. Consider both the development of 'money' from coins and notes to checks to credit cards to electronic transfer of funds, present and future interest rates, possible developments on the 'inflation fro
Following is the current asset section from the ABC, Inc. balance sheet As of December 31 ($000s) 2010 2009 2008 Cash and cash equivalents 313454 459871 396290 Accounts receivable (less allowances for doubt accounts of $24,552, $25,850 and $26,481 respectively) 762895 624910 589416 Inventories---net 991577 889679 10099
Allowance for Uncollectible Accounts : Using the Percentage of Net Sales Method and Accounts Receivable Aging Method
The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable results in an estimate of $9,000 of unc
Governments in the U.S. are under considerable financial strain (see for example http://www.usdebtclock.org). It has become increasingly important to not only ensure the accuracy of financial and program documents but to strategically strive to improve the financial and program performance of government agencies. One method of i
For each individual on the engagement team and on the management of YOUCPA, complete the following: 1. Determine if they are or are not independent. 2. Explain your reasoning. YOUCPA is a regional CPA firm engaged in public audit work of small- and medium-size firms in the Midwest. The YOUCPA firm has their main office i
**Please pretend you are interviewing someone who has a Senior position at a Bank. Please provide details on the results of an interview that you will conduct in person with a manager of a bank. 1) This person must hold some type of supervisory, management or leadership position within the organization that you have sel
List and describe three goals of an organization's internal audit function.
Prepare a bank reconciliation for XYZ Company at September 30 using the following information: Balance per XYZ Company bank statement at September 30. $ 7,351.10 Outstanding checks 5,645.45 NSF checks from customers
Identify a profile for a taxpayer who is more likely than the national average to be audited by the IRS. What factors cause certain taxpayers to be audited more frequently? What actions should taxpayers and the IRS take to ensure fairness and equality? Explain.
(Knapp, W. 8e. PP. 193-195) 1 Identify audit procedures that might have detected the improper accounting treatment applied by Dollar General to the transaction with IBM. 2. Identify the accounting concepts or principles violated by Dollar General in this case. Defend each of your choices. 3. Under what circumstances, if any
Design tests of controls, substantive tests of transactions, and analytical procedures for the Cash Cycle at Apollo Shoes.
Considering that an auditor cannot express an opinion with certainty even after conducting an audit, is an audit worth the cost for the stakeholder? 100 words.
Your company's accounts payable clerk is asked to fill in for your accounts receivable clerk. Many things look unfamiliar to her, and she needs some explanations. You start by saying, "Accounts receivable is claims from monies due to the company." Continue your explanation with the following: Explain: - the classification of
You are the newly hired accountant for The Gift Shop. The owner has just received the December 31, 2008 bank statement and has asked you to prepare the monthly bank reconciliation. Write the procedure documentation for the monthly bank reconciliation process in a professional manner. It will be the desktop guide used by o
These are two separate questions, I do not understand so any help would be great! (1) Total credit sales : $2,500,000 Accounts receivable at December 31: 970,000 Bad debts written off : 66,000 a) Assume that Hamilton Company estimates its bad debts expense based on 7% of accounts receivable. What amount of bad debts ex
On September 1, 2011, Triton Entertainment borrowed $24 million cash to fund a new Fun Park. The loan was made by Nevada Bank under a non-committed short-term line of credit arrangement. Triton issued a 9-month, 12% promissory note. Interest was payable at maturity. Triton's fiscal period is the calendar year. Required:
Draft a business letter to Apollo Shoes that addresses the following key points; assume the role of an auditor at a local firm. - Explain the auditing and other assurance services your firm offers and the benefit each has for the client - Explain your role in providing the available assurance service to clients - Desc
Discuss the audit planning and risk assessment of the case below. Also speak to the course of action required regarding the audit. Smackey Dog Foods, Inc - Scenario Summary Smackey Dog Foods, Inc. started in the kitchen of Sarah, Kim, and Jillian's family home in the suburbs of Chicago. The three sisters initially bought t
Scenario: Over five years ago, I received a phone call from the headquarters of a non-profit organization to which I have belonged for over thirty years. They advised me that they had received word from a few members of one of the local organizations in Texas that they had some concerns that there might be some financial
1) When planning the audit, the auditor must make the following important decisions except the: a. assignment of staff to perform audit tests. b. nature of tests to be performed. c. characteristics of tests to be performed d. extent of tests to be performed. e. timing of tests to be performed 2) The five management ass
Internal vs. External Auditors While internal auditors and external auditors should have complementary interests and goals, there are differences in their scope of work. For this discussion, explore the advantages and disadvantages of selecting outside independent auditors versus internal auditors for various attestation work
You are the auditor for Busy Butterfly Corporation, whose management asserts that its internal controls are effective. While performing your audit of Busy Butterfly Corporation, you reviewed the financial statements, and your only concern was with your discovery of the evidence that during the year, the company had a negative ca
Can you comment on the following two areas? 1) A revised or final acceptable level of detection risk is determined for each assertion after (1) assessing inherent risk, (2) performing analytical procedures in audit planning, (3) assessing the risk of fraud for an assertion, and (4) making a final assessment of control risk fo
Describe the process of performing an external audit in an organization implementing strategic planning for the first time.
Recall that a bank manager has developed a new system to reduce the time customers spend waiting to be served by tellers during peak business hours. The mean waiting time during peak business hours under the current system is roughly 9 to 10 minutes. The bank manager hopes that the new system will have a mean waiting time that i
Identifying and Evaluating Audit Issues: The Case of VITALOGISTICS ISSUES IN ACCOUNTING EDUCATION Vol. 22, No. 1 February 2007 pp. 79-88 Stephen Kwaku Asare and Arnold M. Wright This case invites you to identify audit issues and evaluate an audit team's judgments and decisions on a new engagement (VITALOGISTICS). You