Comp Problem

Decent Essays

ACC303 Comprehensive Problem-Student Instructions
Instructions to Students
This assignment must be done independently-at home.

Ingalls Corporation is in the process of negotiating a loan for expansion purposes. The books and records have never been audited, and the bank has requested that an audit be performed. Ingalls has prepared the following comparative financial statements for the years ended December 31, 20x4, and 20x3. Ingalls Corporation is in the Athletic Sportswear Industry and their business is merchandising. You have been asked to review the statements to ensure its accuracy and freedom from errors and omissions. During your audit, some of the findings included the following facts: * An analysis of collections and …show more content…

* An analysis of 20x3 operating expenses revealed that Ingalls charged the following item to expense: a 3 year insurance premium in the amount of $ 2,700.00 that started and was recorded on January 2, 20x3.

Required: 1) Prepare any entries to correct the books as of December 31, 20x4. The books for 20x4 have not yet been closed. 2) Be sure to review the existing statements for any other omissions and errors. 3) Prepare in proper and good form the multi-step Income Statement, Statement of Retained Earnings, and the classified Balance sheet for 20x3 and 20x4. 4) Each statement should be on a separate worksheet and all worksheets should be linked (Income from the Income statement is linked to the Statement of Retained Earnings). Work should be completed using Microsoft Excel. All worksheets should be in printable form. 5) Use the “T” account form to track entries. 6) After identifying the errors and correcting the books, prepare a memorandum Microsoft word document addressing the CEO and Board of Directors of Ingalls summarizing the effect of the errors, changes and corrected statements. Each of the corrections/changes should be in a separate paragraph. 7) Submit your work to the appropriate link in the weekly folder in Blackboard.

Ingalls Corporation Comparative Balance Sheet As

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