During your annual audit of Walker Distributing Company, your assistant, Jane Williams, reports to you that, although a number of entries were made during the year in the general ledger account Notes Payable to Officers, she decided that it was not necessary to audit the account because it had a zero balance at year-end.   Required: Do you agree with your assistant’s decision? Discuss.

Q: Milar Corporation makes a product with the following standard costs:    Standard Quantity or Hours…

A: Variable overhead rate variance = (Actual rate - Standard rate)*Actual hours Actual rate = Actual…

Q: Record the journal entries for the month of July. Post the July journal entries into your general…

A: Journal Entries Date General journal Debit ($) Credit ($) 1-Jul-20 Cash       5,300…

Q: A computer lists for $ 600. 1. Find the trade discount if a discount rate of $ 10 is offered. 2.…

A: INTRODUCTION   Rate is a fixed amount of money on which is something cost discount -is a…

Q: years ago degree. Although he is satisfied with his current job, his goal is to become an investment…

A: Decision making refers to the procedure of making the choices through identifying the decision,…

Q: rane Corporation issued 4,400, five year, 4% bonds at 104 on January 1, 2020. Interest is paid…

A: The accounting for the convertible bond requires recording its Liability portion and equity portion…

Q: Accounting-201 1. Under a perpetual inventory system part of the merchandise purchased on account at…

A: 1. c) debit to Accounts payable and a credit to Merchandise inventory 2. b) Net Sales and the Cost…

Q: What amount shall be reported as current tax liability?

A: An entity makes tax payments after availing all the deduction or benefits provided by the act and…

Q: Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume…

A: Tax refers to the financial charge which is compulsory in nature and it is imposed through the…

Q: Georgetown purchased supplies on August 8, 20X2, for $4,400. At the fiscal year-end on September 30,…

A: a. Date Particulars Debit Credit Aug 8, 20x2 Expenditure $4400     Vouchers Payable    $4400…

Q: Southwestern Industries has the following selected data ($ in millions): Balance sheet data Total…

A: Debt to Equity Ratio: Debit and Equity both are used to provide funds to the business. The debt to…

Q: List the audit objectives for substantive tests of interest-bearing debt.   b. List seven…

A: The audit objectives for substantive tests of Interest Bearing Debt are as under :  Assess the…

Q: Pinnacle Corp. budgeted $253,730 of overhead cost for the current year. Actual overhead costs for…

A: The overhead is applied to the production on the basis of predetermined overhead rate.  The…

Q: is the function of a budget?

A: Budget is nothing but planned allocation of revenue and expenses so that it help organization the…

Q: On 9/1, one company had total stockholders' equity of $158,000. During the month, it had net income…

A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…

Q: ABC Co. started work on an P8,000,000 fixed-price construction contract in 20x1. Information on the…

A: Percent complete=Costs to dateCosts to date+Estimated costs to complete×100 Profit/(loss)…

Q: Privett Company Accounts payable Accounts receivable Accrued liabilities Cash $36,632 72,986 6,134…

A: Quick assets can be converted into cash quickly. Inventory and prepaid expenses are current assets…

Q: Daniel and Nancy Garfield invested $6,700 in a savings account paying 4% annual interest when their…

A: The time value of money is the concept widely used by individuals, organizations, and governments to…

Q: The Smith Company is proposing to spend $3,195,400 on a project that has estimated net cash flows of…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year,…

A: Under the indirect method to calculate cash flow from operations, net income is reconciled with the…

Q: Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare…

A: Lump-sum asset purchase refers to the purchase of different class of assets like plant, equipment,…

Q: Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years)…

A: Time interest earned ratio indicates the performance of the company to payout interest expenses of…

Q: Selected comparative financial statements of Korbin Company follow. Sales Cost of goods sold Gross…

A: Income statement is the financial statement which is prepared by the entity for reporting and…

Q: Nala Inc. purchased a plot of land on which a $60,000 payment will be due each year for the next…

A: Given that, Cash outflow each year = $60,000  Number of years = 5 years Total cash outflow = $60,000…

Q: [A] The franchisor will initially recognize P20,000 contract asset. [B] The franchisor will…

A: Franchise Agreement To recognize the revenue in the franchise agreement either in the point of time…

Q: Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on…

A: Depreciation is a non cash expense which is charged for the part which has been considered to be…

Q: Conduct the following variance analysis and evaluate the results. Show the steps in your…

A: Price variance : Comparison between budgeted price and actual price for actual output  (Average…

Q: For the following question, reconcile the bank statement and check register. Would they need to make…

A: Lets understand the basics. Bank reconciliation is need to prepare to calculate the difference and…

Q: You are working as a project manager of a construction company. Due to the economic impact, your…

A: The ratios used to express the arithmetical relationship of accounting figures are known accounting…

Q: XYZ Corporation has a lower and an upper limit for its savings account at P40,000 and P70,000…

A: Additional funds refers to the concept where the business or person looks to expand the operations…

Q: Which of the following is not a factory overhead allocation method? a.activity-based costing…

A: Introduction: Managerial accounting reports are used to plan, regulate, make decisions, and monitor…

Q: The following information relates to production activities of Mercer Manufacturing for the year.…

A: When the standard costs are compared with the actual costs there occurs either a favorable or…

Q: Outline the responsibilities of the compliance officer or partner for income tax purposes in a…

A: Introduction:   A limited liability partnership (LLP) is a type of business alliance in which the…

Q: What amount will be presented on the balance sheet for fiscal 2020?

A: The present scenario is defined under Define Benefit Plans of Post employment Benefits para in IAS…

Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…

A: Proceeds from redemption  = $294,000 * 98/100 = $288,120

Q: Rustco Ltd have developed a new paint to help prevent corrosion and are marketing it for use on the…

A: (1)         Note, 1 litre =1000 ml         Standard mix quantity =  Actual quantity of material…

Q: If the firm were all equity financed and the firm followed a strict residual dividend policy, how…

A: When a company follows strict residual dividend policy then it means that company will calculate…

Q: The present value of $40,000 to be received in two years, at 12% compounded annually, is Present…

A: According to the concept of present value the value of money decreases each year , thus the value of…

Q: Briefly explain three non cash dividend options

A: Dividend is a distribution of profit of company to its shareholders. When company earn profit. The…

Q: Planet Airways has been given a 5-year license to start a budget airline between Stardust and…

A: Decision can be taken on the basis of Net present value. Net present value is the difference between…

Q: The total cost of ownership for Supplier A is $. (Enter your response rounded to the nearest whole…

A: Given in the question:       SupplierA SupplierB Price per motor  $775.00  $1,025.00…

Q: Integrity Company, a newly formed company, had the following shares issued and outstanding as of…

A: Ordinary share capital is the par value of ordinary shares. Preference share capital is the amount…

Q: he wishes to know what the annual cost, at the economic life, will be for a van with the following…

A: The annual cost analysis helps an organization to evaluate the life cycle of a project.   The…

Q: The sales and cost data for two companies in the transportation industry are as follows: X Company…

A: For X Company: Annual Break-even point in sales dollars = Fixed cost/Contribution margin ratio =…

Q: Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.…

A: Detailed answer below: Year 1:Ordinary Income $44,500 (includes $2,000 of interest income related to…

Q: Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base…

A: Solution: Fixed overhead volume variance is computed using formula = Fixed overhead applied -…

Q: Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option…

A: Answer:-  Net present value meaning:- Net present value, is applied to a sequence of cash flows that…

Q: Required: Prepare the following: 1. Worksheet for the month ended June 30, 2021 2. Adjusting Entries…

A: “As the question has more than 3 sub-parts, the first 3 sub-parts are answered. If you want the…

Q: Honesty Company acquired a machine by signing a five-year lease on January 1, 2021. Annual rentals…

A: The requirement is to compute the depreciation expense to be recognized in 2021 for the machine…

Q: Journalize the transactions

A: Journal entries forms the basic step for preparation any books of accounts. Dual accounting approach…

Q: Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is…

A: CASH FLOW FROM INVESTING ACTIVITY SHOWS THE AMOUNT OF CASH RECEIVED OR SPENT RELATED TO COMPANY LONG…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.