Background information Putt and Play is a theme park designed for children age ranges from 3 years to 12 years old. Customers pay a fixed fee to enter the park, where they can participate in a variety of activities such as riding roller-coasters, bumper cars, mello-go-round, playing on slides and purchasing themed souvenirs from gift shops. The park is open weekly from Tuesdays to Sundays and has been in operation for the last ten years. It is located in Kingston with ample parking for patrons and efficient, reliable security for patrons. The security officer is to ensure customers can feel safe while they are in the park and not to be worrying about their cars be broken into or stolen. Putt and Play is now very successful; customer numbers are increasing at approximately 15% each year. Cash sales All ticket sales are recorded on a computer showing the amount of each sale and the number of tickets issued. This information is transferred electronically to the accounts office. Cash is collected regularly from each ticket office by two security guards. The cash is then counted by two accounting clerks and banked on a daily basis. The total cash from each ticket office is agreed to the sales information that has been transferred from each office. Total cash received is then recorded in the cash book and then the general ledger. Credit card sales Payments by credit cards are authorised online as the customers purchase their tickets. Computers in each ticket office record the sales information which is transferred electronically to the accounts office. Credit card sales are recorded for each credit card company in a receivables ledger. When payment is received from the credit card companies, the accounting clerks agree the total sales values to the amounts received from the credit card companies, less the commission payable to those companies. The receivables ledger is updated with the payments received. You are now commencing the planning of the annual audit of Putt and Play. The date is March 3,2020 and Putt and Play ’s year end is 31 March 2020. Required: The auditor partner has met with the team assigned to the audit to develop the plan for the audit. Explain the importance of planning the audit. ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit. What are the benefits of planning the audit

Background information Putt and Play is a theme park designed for children age ranges from 3 years to 12 years old. Customers pay a fixed fee to enter the park, where they can participate in a variety of activities such as riding roller-coasters, bumper cars, mello-go-round, playing on slides and purchasing themed souvenirs from gift shops. The park is open weekly from Tuesdays to Sundays and has been in operation for the last ten years. It is located in Kingston with ample parking for patrons and efficient, reliable security for patrons. The security officer is to ensure customers can feel safe while they are in the park and not to be worrying about their cars be broken into or stolen. Putt and Play is now very successful; customer numbers are increasing at approximately 15% each year. Cash sales All ticket sales are recorded on a computer showing the amount of each sale and the number of tickets issued. This information is transferred electronically to the accounts office. Cash is collected regularly from each ticket office by two security guards. The cash is then counted by two accounting clerks and banked on a daily basis. The total cash from each ticket office is agreed to the sales information that has been transferred from each office. Total cash received is then recorded in the cash book and then the general ledger. Credit card sales Payments by credit cards are authorised online as the customers purchase their tickets. Computers in each ticket office record the sales information which is transferred electronically to the accounts office. Credit card sales are recorded for each credit card company in a receivables ledger. When payment is received from the credit card companies, the accounting clerks agree the total sales values to the amounts received from the credit card companies, less the commission payable to those companies. The receivables ledger is updated with the payments received. You are now commencing the planning of the annual audit of Putt and Play. The date is March 3,2020 and Putt and Play ’s year end is 31 March 2020. Required: The auditor partner has met with the team assigned to the audit to develop the plan for the audit. Explain the importance of planning the audit. ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit. What are the benefits of planning the audit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10E: WaterWorld Inc. operates an aquarium and water park in Orlando, Florida. In addition to daily...

See similar textbooks

Related questions

Concept explainers

Question

Background information

Putt and Play is a theme park designed for children age ranges from 3 years to 12 years old. Customers pay a fixed fee to enter the park, where they can participate in a variety of activities such as riding roller-coasters, bumper cars, mello-go-round, playing on slides and purchasing themed souvenirs from gift shops.

The park is open weekly from Tuesdays to Sundays and has been in operation for the last ten years. It is located in Kingston with ample parking for patrons and efficient, reliable security for patrons. The security officer is to ensure customers can feel safe while they are in the park and not to be worrying about their cars be broken into or stolen.

Putt and Play is now very successful; customer numbers are increasing at approximately 15% each year.

Cash sales

All ticket sales are recorded on a computer showing the amount of each sale and the number
of tickets issued. This information is transferred electronically to the accounts office.
Cash is collected regularly from each ticket office by two security guards. The cash is then
counted by two accounting clerks and banked on a daily basis.
The total cash from each ticket office is agreed to the sales information that has been
transferred from each office.
Total cash received is then recorded in the cash book and then the general ledger.

Credit card sales

Payments by credit cards are authorised online as the customers purchase their tickets.
Computers in each ticket office record the sales information which is transferred electronically
to the accounts office.
Credit card sales are recorded for each credit card company in a receivables ledger.
When payment is received from the credit card companies, the accounting clerks agree the
total sales values to the amounts received from the credit card companies, less the
commission payable to those companies. The receivables ledger is updated with the payments
received.

You are now commencing the planning of the annual audit of Putt and Play. The date is
March 3,2020 and Putt and Play ’s year end is 31 March 2020.

Required:

The auditor partner has met with the team assigned to the audit to develop the plan for the audit. Explain the importance of planning the audit.
ISA 300 Planning an Audit of Financial Statements provides guidance to assist auditors in planning an audit. What are the benefits of planning the audit

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.