Counting cash and verifying bank reconciliation are basic substantive procedures and are not required in the audit of specialized industries * a. True b. False

Q: 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if...

A: Operating income refers to the income or gross profit generated by the company from its operations o...

Q: Wynn Company reported revenue of P6,000,000 under the cash basis for the year ended 2020. Additional...

A: Under accrual basis of accounting, transactions for revenue is recorded when earned and expenses are...

Q: Wynn Company reported revenue of P6,000,000 under the cash basis for the year ended 2020. Additional...

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...

Q: Compute for the amount presented as noncash Assets in the balance sheet on December 31, 2020 using t...

A: Intangible Assets are classified as Assets that are non-current (means long term). This is because b...

Q: The following were taken from the records of LML Co. as of December 31, 2010: • Checks drawn but not...

A: The transactions till December 31 , 2010 cash will be included in LML's December , 2010 cash. Custom...

Q: ou are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for...

A:

Q: LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cullumber, Inc. fo...

A: Lease is an agreement or arrangement between two parties, in which one party provides its asset for ...

Q: Basketball Co. wholly owns Volleyball Co. During the year, Basketball purchased inventory from Volle...

A: In intercompany transaction for Cost of goods sold, The parent company’s and subsidiary company’s ba...

Q: Chanter 9 Receivables Receivables s: Series A PR 9-1A Entries related to uncollectible accounts OBJ....

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for...

Q: JJ Corporation is analyzing its option to restrict its credit terms. Current sales level is P6,000,0...

A: solution below are the given details about both situations For current Current sales level          ...

Q: In 2O2O Coca Cola reported net operating revenues of P18.2 billion and cost of goods sold for P0.8 b...

A: The gross profit rate indicates the percentage of the profit earned by the business after deducting ...

Q: Assume that IBM leased equipment that was carried at a cost of $62,000 to Carla Vista Company. The t...

A: Lease initially measured on Dec 31, 2019 = $92,001   During the year 2020: Interest Income = $92,001...

Q: Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inven...

A: Manufacturing overhead costs seem to be the total of all indirect expenses involved during the produ...

Q: Choy, after receiving her degree in Hotel and Restaurant Management began her own business called Ch...

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is recor...

Q: Adams Corporation uses a periodic inventory system and the retail inventory method to estimate endin...

A: Net purchase at retail = Goods available at retail - markups + markdowns  Goods available at retail ...

Q: HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two p...

A:

Q: Requirements: Compute for the basic and diluted EPS.

A: Earnings per share are the earnings of shareholders after all the payments towards expenses includin...

Q: Problem #3 On June 30, 2021 Gerry and Henry, competitors in business, decide to consolidate their bu...

A: Partnership is one of the form of business organisation. At the time of formation of partnership, al...

Q: 1. How much is the increase in the capital of Choy after taking into account all transactions?

A: Financial statements are the set of records of the financial transactions and position of a business...

Q: On January 1, 2018, a company purchased a delivery truck for $45,000 cash. The truck had an estimate...

A: Depreciation expense is the reduction in the value of an asset due to normal wear and tear, the pass...

Q: For the months of January and February, Crane Ltd. recorded cash deposits in its books of $5,100 and...

A: Given that there are no deposits in transit at the beginning of January. Cash deposit in January and...

Q: In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which cos...

A:                                  Normally for accounting we follow two methods viz Cash Basis and Ac...

Q: 33. On January 2, 2017 Skysong Company leases a machine with a fair value of $35,000 from Snead, In...

A: Lease It is an agreement between the two parties i.e. lessor and the lessee. In which the lessor has...

Q: Bulgasal Company provided the following data: 2020 2021 5,000,000 5,850,000 Share capital (P100 par ...

A: Solution Concept Net income for the current year =change in retained earnings + share dividend issue...

Q: In the audit of loans payable, which of the following audit procedure would be most likely performed...

A: Answer: Audit procedures are the methods that are followed by Auditors during the period of audit of...

Q: . What is the amount of sales under cash basis? 7. What is the amount of purchases under cash basi

A: Solution Concept Sales under cash basis   =cash sales made + collection from debtors Purchase under ...

Q: Trina received a promissory note of Php. 90,000, representing payment for his services as a legal of...

A: Gross Compensation Income=Face Value of Note-Present value of the note

Q: . Hard rock cafe is a wholly-owned subsidiary of Jollibee Foods corporation, and Hard Rock Cafe oper...

A: Solution Concept Single economic entity principle             The consolidated financial statement i...

Q: Sunland Books uses the retail inventory method to estimate its monthly ending inventories. The follo...

A: The cost to retail ratio helps to determine the cost of inventory from the retail value of inventory...

Q: On October 1, Goodwell Company rented warehouse space to a tenant fo $1,600 per month and received $...

A: Unearned revenue is one of the liability of the business, which means revenue received in advance bu...

Q: importance

A: Answer: Source documents is the document that is used as the reference to look for the details of th...

Q: A company reports the following: Sales $591,300 Average accounts receivable (net) 65,700 Determine (...

A: Accounts receivable turnover is the ratio of sales to the average accounts receivable in order to fi...

Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income s...

A: Answer -  Formula for Overall Contribution Margin Ratio -  = Contribution Margin / Sales    Overall ...

Q: The following information relates to Ivanhoe Limited's Cash account. The reconciled cash balance fro...

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with ...

Q: A. Calculate the Additional Profit Contribution from sales that the firm will realize if it makes th...

A: Additional Profit Contribution (1200000*5) 6000000 Marginal investment in accounts receivable ...

Q: The 2021 financial statement audit of OMG company began when the trial balance was received from man...

A: Answer: Given case: The schedule of liabilities to vendor showed that the company has only five supp...

Q: weekly $fill in the blank 1  $fill in the blank 2  Starr, P. MFJ N/A 1,929 weekly fill in the blank ...

A: Wage-Bracket Method:

Q: In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which cos...

A: Monthly installments for 7 months P50,000 * 7 = P350,000 Sales - cost P1200,000 - P800,000 = P400,00...

Q: Exercise 17-17 (Algo) Using activity-based costing to allocate overhead, compute product cost and gr...

A: Activity based costing is a costing method which includes identification of activities in the compan...

Q: Pantone Corporation is a calendar year taxpayer. Dave owns one-third (100 shares) of Pantone stock. ...

A: A dividend is a fee paid to the shareholders of a company. It is used by businesses to distribute pr...

Q: During the course of your December 31, 2021 audit of BeCareful Company’s liabilities, you have noted...

A:

Q: Required: a. What was the total of accounts written off during the first 11 months? (Hint Make a T-a...

A: Solution:- Given, On January 1, 2019, the balance in Tabor Co.'s allowance for Bad debts account was...

Q: Ms. QWE began a business on April 1, 2021, contributing to the business the following assets: Cash 3...

A: The transactions in the business effects two or more accounts.  The accounting equation states that ...

Q: A restaurant does not reduce the value of its glassware to liquidation value because of the ______ p...

A: While preparing accounting statements, there are some basic principles which are followed universall...

Q: Phillip Company provided the following information with respect to its cash and cash equivalents on ...

A: Cash and cash equivalents- Cash and cash equivalents are the most liquid current assets that are sho...

Q: In 2020, Mr. Marangley, a dealer of car, disposed a brand new sports utility vehicle (SUV) which cos...

A:   Ans. P 116,667

Q: he S Company owns 70% of the G Company. On the last day of the accounting period G sold to S a non-c...

A: Solution Concept While preparing the consolidated financial statements , the inter company transacti...

Q: Sheffield Corporation agrees on January 1, 2020, to lease equipment from Packers, Inc. for 3 years. ...

A: The question is based on the concept of Operating Lease in  Lease Accounting. Operating lease does n...

Q: Company showed equipment with an original cost pf P379,000 and P344,000 with accumulated depreciatio...

A: Depreciation is an expense which is charged on depreciable assets. Depreciation is the reduction in ...

Q: nd of 3,000,000 for a fund set aside for operating expenses. The cost to transfer funds into this ac...

A: Optimum cash balance: It is the balance wherein the cost of depositing the fund is minimum if we com...

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.