g checks and tamporing with company documents. The stolen cash was used to stoke a gambling habit. In total, th
Q: On January 1, 2018, a new building was purchased at a cost of P30 million. Depreciation was computed...
A: The question is related to the Revaluation of Assets. When Revaluation of Assets are made, then foll...
Q: Explain the three principal reasons organizations want to keep cash on hand or in bank accounts.
A: Introduction:- Cash on hand is the sum of money that your business has immediately available on the ...
Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $10,000 down and ...
A: Lets understand the basics. For recording financial event or transaction occur during a particular p...
Q: a. The home office has billed the branch the amount of P37,500 for the merchandise, which was in tra...
A: Adjusted balance of the Home office account on the books of the branch: Amount (P) Branch...
Q: Q1. State whether these statements are true or false. Discuss why the false statements are false. a....
A: a. True b.True c. False AICPA authoritative standards publications provide accounting professionals ...
Q: Required: Compute the company's activity variances for May. (Hint: Refer to Exhibit 9-6.)
A: In this question, we have to find out activity variance Activity variance is the difference between...
Q: Michael's, Incorporated, just paid $3.70 to its shareholders as the annual dividend. Simultaneously,...
A: Current Share Price: The current price of a stock, currency, commodity, or precious metal that is tr...
Q: In 2021, Southwestern Corporation completed the treasury stock transactions listed below. February 2...
A: Treasury stocks are the company's own stock acquired by the company. They are acquired either to ret...
Q: Complete a margin analysis for Associated Industries and answer the questions below. Associated Indu...
A: Operating Margin: The operational margin is a measure of how much profit a firm generates on a dolla...
Q: March 2025, Wyoming Company filed a suit against DC Company seeking P2,000,000 damages for patent in...
A: GAAP- Generally Accepted Accounting Principles. GAAP is a set of accounting standards, regulations, ...
Q: Garza Corporation has two production departments, Casting and Customizing. The company uses a job-or...
A: Lets understand the basics. Predetermine overhead is an overhead which is used to allocate cost to t...
Q: The state of BioFuels now and in the future How BioFuels will help create a more green future BioFue...
A: Biofuel is considered as the evergreen fuel that is derived through the biomass—basically from the, ...
Q: A machine costing P3,750,000 with an eight-year estimated useful life and an estimated residual valu...
A: Machine cost = P3,750,000 Residual value = P150,000 Depreciable value = 3750000-150000 ...
Q: roper format. munt Amount Account Amount Expense 18,000 Beginning Inventory 190,000 Return 2,000 Lan...
A: Income statement (IS) is the statement which is prepared by the companies during the end of period ...
Q: Jasper makes a $79.000, 90 day. 7% cash loan to Clayborn Co. Jasper's entry to record the transactio...
A: Journal entry is the reporting of the transactions in the books of an entity.
Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Produ...
A: Calculation of Manufacturing cost per unit of Product A and Product B (per unit) Product A P...
Q: Which of the following are nontax characteristics of a qualified terminable interest property (QTIP)...
A: A Qualified Terminable Interest Property Trust enables the grantor to provide for his surviving spou...
Q: Determine Dianne's provincial income tax deduction per pay period. Your answer:
A: Solution:- Given, Dianne works for a company located in Pierrefonds, Quebec. Salary = $53,274 semi-...
Q: Retained earnings, May 1 $3,750,000 Net income 720,000 Cash dividends declared 80,000 Stock dividend...
A: Retained Earnings is the accumulated earnings over the period of time. This is an important part of ...
Q: 15. Historical cost and fair value statement of financial position data on January 1, 2021, are as f...
A: Ordinary Shares of Octane = P150000 Par Value per Share = P5
Q: -Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An ab...
A: Solution 1: Total Manufacturing Overhead 608000 /Total Direct labor 304000 Prede...
Q: Retained earnings, May 1 $3,750,000 Net income 720,000 Cash dividends declared 80,000 Stock dividend...
A: Retained earnings: It implies to the undistributed earnings of the business that are not distributed...
Q: Retained earnings, May 1 $3,750,000 Net income 720,000 Cash dividends declared 80,000 Stock dividend...
A: Ending retained earnings = Beginning retained earnings + Net income - Cash dividends declared - Stoc...
Q: Which of the following statements is incorrect? A. As the risk of material misstatement in the finan...
A: It is important for the Auditors to detect the material misstatement which are involved to the Audit...
Q: 20.Charles Company has some old equipment that cost P700,000 with an accumulated depreciation of P40...
A: Answer) Calculation of Initial cost newly acquired equipment The machine will initially be recorded ...
Q: At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 6...
A: Balance Sheet (Extracts) ASSETS Current Assets: Accounts Receivable $4,80,000 Less: All...
Q: Dolfo and Poldo formed a partnership. Dolfo contributed cash of P600,000, desktop computer of P70,00...
A: Wokring note :- As per standard practices we will consid...
Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y C...
A: In case one company overtake the assets and liabilities of another company , then accounting for am...
Q: or German (from 3 c er "Actors" and "Actres ring dictionary where
A: Algorithm 1. loop for each country i. loop for each artist type a. loop for each ...
Q: ABC Company operates a branch. At the end of the year, the Branch account in the books of the home o...
A: S.no Description Debit (P) Credit (P) a. Goods sent to branch Branch (Goods are still in tr...
Q: ABC Co. owns a branch. At the end of the month, the balance of the Allowance on overvaluation is P95...
A: Percentage of profit on cost= Allowance on overvaluation/ Cost*100
Q: Note that this was everything given for this particular item. Use the information below to figure...
A: Inventory valuation is based on the flow of exemption used by the company. There are many methods fo...
Q: On January 1, 2018, the Danelle Company leased a portion of the commercial building owned by Joseph ...
A: Carrying amount of the leasehold improvement on January 1, 2021: The leasehold improvement should be...
Q: Karla Tanner opened a Web consulting business called Linkworks and completed the following transacti...
A: The journal entries are prepared to keep the record of day to day transactions of the business. The ...
Q: Steinberg Company produces commercial printers. One is the regular model, a basic model that is desi...
A: Lets understand the basics. Break even point is a point at which contribution is equal to fixed cost...
Q: Your client has an adjusted gross income this year of $40,000. She would like to reduce her income t...
A: Adjusted gross income of the client this year = $40,000 Plans to Contribute towards American Cancer ...
Q: During 2023, Lowry Company was used by a competitor for P5,000,000 infringement suit of a trademark....
A: GIVEN During 2023, Lowry Company was used by a competitor for P5,000,000 infringement suit of a tr...
Q: The partnership of DBM, TRA and MDS become insolvent on December 31, 2018 and is to be liquidated. ...
A: The partnership of DBM, TRA and MDS has become insolvent and is to be liquidated. The next step show...
Q: Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) The following information ...
A: Depreciation is a concept that is used to write off the cost of an item over its usable life. Deprec...
Q: Goodard inc. planned to use $160 of material per unit but actually used $148 of material per unit, a...
A: Flexible budget is that type and form of budget, which changes along with change in volume or produc...
Q: Home Office Branch Sales P 256,000 P 78,500 Purchases from outsiders 210,000 20,000 Shipments to bra...
A: a. Mark up on purchase = (40,000 - 30,000)/40,000 = 25% of Billing price Inventory at cost on Decemb...
Q: EXERCISE 9-9 Planning Budget LO9-1 Lavage Rapide is a Canadian company that owns and operates a larg...
A: A planning budget refers to the statement prepared by the management based on the estimations to ana...
Q: Flora's Flats produces comfortable and portable women's shoes designed to be worn as a second pair o...
A: Contribution margin per unit = Selling price - Variable cost = 20 - 6 = 14 per...
Q: 4.Assume the following independent cases: (a) At the beginning of the year, a check was issued for ...
A: The cost of an asset acquired is calculated as sum of cash paid and liability asseumed with the acqu...
Q: ABC Company reports the following cost information for December:Cost of goods manufactured P135,800;...
A: Cost of goods manufactured = Total manufacturing costs + Beginning Work-in-process inventory - Endin...
Q: mavy Product, Inc developed standard costs for drect material and direct labor lestmated the folowin...
A: The direct material flexible budget variance is calculated as sum of direct materials price variance...
Q: Problem 2 James Co. purchased equipment on January 1, 2017 for $1,200,000 cash. The company uses the...
A: Journal entry - It refers to the process where the business transactions are recorded in the books o...
Q: image below) Compute for the unadjusted balance of the Home Office Current account.
A: We are given the balance of branch current account and need to find the balance of home office curre...
Q: Tudors, Inc. purchases and resells a single item of product. Inventory at the beginning of September...
A: The FIFO method states that units that are purchased first are to be sold first. The cost per unit i...
Q: Blossom Company provides the following information about Its defined Behefit Service cost $ 91,800 C...
A: The amount charged to expenditure by a firm in regard to its liabilities for employee pensions is kn...
Step by step
Solved in 2 steps
- D.J. Fletcher, a trusted employee of Bluestem Products, found himself in personal financial difficulties and decide to “borrow” $3,000 from the company and to conceal his theft. As a first step, Fletcher removed $3,000 in currency from the cash register. This amount represents the bulk of the cash received over the counter during the three business days since the last bank deposit. Fletcher then removed a $3,000 check from the day’s incoming mail; this check had been mailed in by a customer, Michael Adams in full payment in his account. Fletcher made no journal entry to the record the $3,000 collection from Adams but deposited the check in Bluestem Product’s bank account in place of the $3,000 over-the-counter cash receipts he had stolen. In order to keep Adams from protecting when his month-end statement reached him. Fletcher made a journal entry debiting Sales Returns and Allowances and crediting account receivables Michael Adams. Fletcher posted this entry to the two general ledger…D. J. Fletcher, a trusted employee of Bluestem Products, found himself in personal financial dif-ficulties and decided to “borrow” $3,000 from the company and to conceal his theft. As a first step, Fletcher removed $3,000 in currency from the cash register. This amount repre-sented the bulk of the cash received in over-the-counter sales during the three business days since the last bank deposit. Fletcher then removed a $3,000 check from the day’s incoming mail; this checkhad been mailed in by a customer, Michael Adams, in full payment of his account. Fletcher madeno journal entry to record the $3,000 collection from Adams, but deposited the check in BluestemProducts’s bank account in place of the $3,000 over-the-counter cash receipts he had stolen.In order to keep Adams from protesting when his month-end statement reached him, Fletchermade a journal entry debiting Sales Returns and Allowances and crediting Accounts Receivable—Michael Adams. Fletcher posted this entry to the two general…On February 15, 2022, Kate Collins, owner of Kate’s Cards, asks you to investigate the cash han- dling activities in her business. She believes that a new employee might be stealing funds. “I have no proof,” she says, “but I’m fairly certain that the January 31, 2022, undeposited receipts amounted to more than $12,000, although the January 31 bank reconciliation prepared by the cashier (who works in the treasurer’s department) shows only $7,238.40. Also, the January bank reconciliation doesn’t show several checks that have been outstanding for a long time. The cashier told me that these checks needn’t appear on the reconciliation because he had notified the bank to stop payment on them and he had made the necessary adjustment on the books. Does that sound reasonable to you?” At your request, Kate shows you the following (unaudited) January 31, 2022, bank reconciliation prepared by the cashier: KATE’S CARDS Bank Reconciliation January 31, 2022 Ending balance from bank statement . . . $…
- Nino Moscardi, president of Greater Providence Deposit & Trust (GPD&T), received an anonymous note in his mail stating that a bank employee was making bogus loans. Moscardi asked the bank’s internal auditors to investigate the transactions detailed in the note. The investigation led to James Guisti, manager of a North Providence branch office and a trusted 14-year employee who had once worked as one of the bank’s internal auditors. Guisti was charged with embezzling $1.83 million from the bank using 67 phony loans taken out over a three-year period. Court documents revealed that the bogus loans were 90-day notes requiring no collateral and ranging in amount from $10,000 to $63,500. Guisti originated the loans; when each one matured, he would take out a new loan, or rewrite the old one, to pay the principal and interest due. Some loans had been rewritten five or six times. The 67 loans were taken out by Guisti in five names, including his wife’s maiden name, his father’s name,…On February 15, 2019, Kate Collins, owner of Kate’s Cards, asks you to investigate the cash han-dling activities in her business. She believes that a new employee might be stealing funds. “I have no proof,” she says, “but I’m fairly certain that the January 31, 2019, undeposited receipts amounted to more than $12,000, although the January 31 bank reconciliation prepared by the cashier (who works in the treasurer’s department) shows only $7,238.40. Also, the January bank reconciliation doesn’t show several checks that have been outstanding for a long time. The cashier told me that these checks needn’t appear on the reconciliation because he had notified the bank to stop payment on them and he had made the necessary adjustment on the books. Does that sound reasonable to you?”At your request, Kate shows you the following (unaudited) January 31, 2019, bank reconciliation prepared by the cashierYou discover that the $1,200 unrecorded bank credit represents a note collected by the bank on…In a huge fraud scandal, CEO and CFO stole $150 million and inflated the company income by$500 million. A general ledger clerk was also implicated in the scheme. It was reported that they siphoned money through unapproved loans and fraudulent stock sales. Money was smuggled out of company disguised as executive bonuses or benefits. The reason cited by the perpetrators was that they needed money to pay off some gambling debts.In addition, they also stated that they worked long and hard hours at the company without being properly compensated or recognized. Upon investigating, the auditors found that the fraud had taken place on two levels. The auditors documented in their report that all the three factors of fraud were present. In addition, the auditors found that the company’s control systems deviated from the COSO framework. You are required to: a. IDENTIFY and EXPLAIN the TWO (2) levels of fraud that the auditors found. b. Making reference to the case, IDENTIFY and EXPLAIN…
- Which of the following is NOT a method UCI's former executive VP and CFO used to embezzle 2.97 million? options: 1) Charging personal purchases on UCI's corporate credit card, followed by arranging for UCI to pay the credit card statement by check 2) Preparing false expense reports and submitting them for reimbursement, resulting in payment to himself since nobody other than the accounts payable supervisor reviewed these reports 3) Adding family members to UCI's payroll and placing large checks into their bank accounts 4) Submitting unsupported check requests for personal credit card accounts and nonbusiness expenditures, such as construction work on his personal residenceHelen was a very forgetful person, so she had placed her bank code (PIN number) on the back of her debit card. A thief stole Helen’s card and was able to take $100 from an ATM on the day of the theft. That same day, Helen realized that the card was gone and phoned her bank. The following morning, the thief withdrew another $100. For how much, if anything, is Helen responsible? Why?Baker, an employee of ABC Corporation, had complete control of the purchasing function for his department. Baker authorized the purchase of several thousand dollars’ worth of supplies which were unnecessary to ABC. Baker used these supplies to make improvements to his home. This is an example of what kind of fraud? a. Check tampering b. Theft of inventory c. Personal purchases with company funds d. Misuse of company assets
- Steve Ramos owns apartment buildings in Baguio City, and Tagaytay City. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in the local newspaper. The property managers transfer cash to Ramos monthly and prepare their own bank reconciliations. The manager in Baguio City has been stealing large sums of money. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash than Ramos actually has in the bank. In negotiating the sale of the Baguio City property, Ramos is showing the balance sheet to prospective investors. 1. Identify two parties other than Ramos who can be harmed by this theft. In what ways can they be harmed? 2. Discuss the role accounting plays in this situation.Steve Ramos owns apartment buildings in Baguio City, and Tagaytay City. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in the local newspaper. The property managers transfer cash to Ramos monthly and prepare their own bank reconciliations. The manager in Baguio City has been stealing large sums of money. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash than Ramos actually has in the bank. In negotiating the sale of the Baguio City property, Ramos is showing the balance sheet to prospective investors. Based on Case 3, identify two parties other than Ramos who can be harmed by this theft. In what ways can they be harmed?Henry Mills is responsible for preparing checks, recording cash disbursements, and preparing bank reconciliations for Signet Corporation. While reconciling the October bank statement, Mills noticed that several checks totaling $937 had been outstanding for more than one year. Concluding that these checks would never be presented for payments, Mills prepared a check for $937 payable to himself, forged the treasurer’s signature, and cashed the check. Mills made no entry in the accounts for this disbursement and attempted to conceal the theft by destroying the forged check and omitting the long-outstanding checks from subsequent bank reconciliations. Required: Identify the weaknesses in Signet Corporation’s internal control. Explain several audit procedures that might disclose the fraudulent disbursement.
