give your opinion from the financial accounting perspective. ( You may refer to an appropriate accounting principle.) .Assume a financial year from 1st January -31st Dec 2022. The accountant had deliberately not disclosed that the business had lost Kshs.500,000 following a robbery that took place during that year and that the money was not insured.
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- Assume you are employed as the chief financial officer of a corporation and are responsible for preparation of the financial statements, including the adjusting process and preparation of the adjusted trial balance. The company is facing a slow year, and after your adjusting entries, the financial statements are accurately reflecting that fact. However, as you are discussing the matter with your boss, the chief executive officer (CEO), he suggests that you have the power to make further adjustments to the statements, and that you should use that power to adjust the profits and equity into a stronger position, so that investor confidence in the companys prospects will be restored. Write a short memo to the CEO, stating your intentions about what you can and/or will do to make the financial statements more appealing. Be specific about any planned adjustments that could be made, assuming that normal period-end adjustments have already been reflected accurately in the financial statements that you prepared.The case below relates to IAS 10. Indicate whether they are adjusting and non-adjusting events and how they should be treated according to the standard. On 8 January 2020, one of the accountants left Facey Company Ltd suddenly. On further investigation, the company realized that this employee had been paying himself money from the bank account in relation to false rental invoices. The amount of the overpayment was found to be $86,000. With the help of the police, the accountant was tracked down and repaid all the money on 18 January 2020.If you are the accountant of ABC company. At the end of 2020 the cash balance per book was $10,000 and per bank was $15,000 As an accountant of the company, list the main reasons behind the balances not being equal, explain the accounting treatment that you must use to adjust the differences.
- give your opinion from the financial accounting perspective. ( You may refer to an appropriate accounting principle.) .Assume a financial year from 1st January -31st Dec 2022. The accountant reflected in the books that debtors owe the firm Kshs.2,150,000. This happened despite knowing that one of the debtors had been declared bankrupt one year ago. The debtor owed the business Kshs.300,000.Ian Shetu has run a small business for many years. he has never kept adequate accounting records. however, a need to obtain a bank loan for the expansion of the business has necessitated the preparation of financial statements for the year ended 31 July 2021. As a result, the following information has been obtained after much careful research; The business assets and liabilities are as follows: 31 July 2020 31 July 2021 N$ N$ Inventory 8 600 16 800 Account Receivables 3 900 4 300 Account Payable 7 400 8 900 Rent Payable 300 420 Electricity Accrued 210 160…Cory Company's bookkeeper is not familiar with accrual accounting concepts. He determined net income for 2022 to be P 79,800. In your audit of the company you determine the following: Accrued, but unpaid, wages at the end of 2022 amounted to P 45,750 and have not been recorded. Insurance premiums paid in 2022 totaled P 180,000, only 1/3 of which relate to coverage for 2022. The other 2/3 of which relate to coverage in future years. (The complete amount was expensed when paid.) Accounts receivable of P 500,000, which have been properly recorded, are expected to result in losses from uncollectibility of P 30,000. (No specific accounts have been written off as of the end of the year.) Cash of P 115,000, received in late 2022, was recorded as revenue, although the work to be performed under the related contract will take place in 2023. QUESTION: What is the revised net income figure for 2022?
- Explain how the transactions below should be treated in the financial statements of Gidimadjor Catering Services in accordance to IAS 10; Events after the Reporting Period:i. Gidimadjor Catering Services has an investment worth GH¢1 million in its financial statements at 31 December 2018. Due to the continuing recession, the investment reduced in value to GH¢900,000 by 15, January 2019.ii. On 8 January 2019, one of the accountants left Gidimadjor Catering Services suddenly. On further investigation, the company realized that this employee had been paying himself money from the bank account in relation to false rental invoices. The amount of the overpayment was found to be GH¢86,000. With the help of the police, the accountant was tracked down and repaid all of the money on 18 January 2019.iii. On 10 January 2019, Gidimadjor Catering Services sold some inventory for GH¢80,000. This inventory had been included in the year-end inventory count at cost of GH¢100,000.iv. Gidimadjor Catering…Although Deborah Adefowope has run a small business for many years, she has never kept adequate accounting records. However, a need to obtain a bank loan for the expansion of the business has necessitated the preparation of ‘final’ accounts for the year ended 31 August 2009. As a result, the following information has been obtained after much careful research: Deborah Adefowope’s business assets and liabilities are as follows: As at 1/09/08 31/08/09 Stock in trade GHS8,600 GHS16,800 Debtors for sales 3,900 4,300 Creditors for purchases 7,400 8,900 Rent prepaid 300 420 Electricity accrued due 210 160 Balance at bank 2,300 1,650 Cash…Pamana Company's bookkeeper is not familiar with accrual accounting concepts. He determined net income for 2022 to be P 79,800. In your audit of the company you determine the following: 1. Accrued, but unpaid, wages at the end of 2022 amounted to P 45.750 and have not been recorded. 2. Insurance premiums paid in 2022 totaled P 180,000, only 1/3 of which relate to coverage for 2022. The other 2/3 of which relate to coverage in future years. (The complete amount was expensed when paid.) 3. Accounts receivable of P 500,000, which have been properly recorded, are expected to result in losses from uncollectibility of P 30,000. (No specific accounts have been written off as of the end of the year.) 4. Cash of P 115.000, received in late 2022, was recorded as revenue, although the work to be performed under the related contract will take place in 2023. QUESTION: What is the revised net income figure for 2022?
- During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…You work as an accounting professional and have been contracted by the auditors of Jane Company for a job. In examining the company’s records, you have extracted the following information: Jane Account Balances 2018 2019 Accounts Payable $ 24,600.00 $ 21,250.00 Accounts receivable $ 15,700.00 $ 12,340.00 Cash $ 23,450.00 $ 28,600.00 Cost of goods sold $ 19,700.00 $ 23,000.00 Depreciation $ 3,090.00 $ 4,590.00 Dividends $ 5,800.00 $ 10,800.00 Interest $ 2,340.00 $ 2,890.00 Inventory $ 7,050.00 $ 8,640.00 Long-term debt $ 28,000.00 $ 30,000.00 Net fixed Assets $ 41,500.00 $ 48,000.00 Other expenses $ 2,400.00 $ 2,800.00 Sales $ 58,000.00 $ 62,500.00 Short-term notes payable $ 2,890.00 $ 2,340.00 Shares outstanding $ 85,000.00 $ 90,000.00 The tax rate is 32% You are required to:…You work as an accounting professional and have been contracted by the auditors of Jane Company for a job. In examining the company’s records, you have extracted the following information: Jane Account Balances 2018 2019 Accounts Payable $ 24,600.00 $ 21,250.00 Accounts receivable $ 15,700.00 $ 12,340.00 Cash $ 23,450.00 $ 28,600.00 Cost of goods sold $ 19,700.00 $ 23,000.00 Depreciation $ 3,090.00 $ 4,590.00 Dividends $ 5,800.00 $ 10,800.00 Interest $ 2,340.00 $ 2,890.00 Inventory $ 7,050.00 $ 8,640.00 Long-term debt $ 28,000.00 $ 30,000.00 Net fixed Assets $ 41,500.00 $ 48,000.00 Other expenses $ 2,400.00 $ 2,800.00 Sales $ 58,000.00 $ 62,500.00 Short-term notes payable $ 2,890.00 $ 2,340.00 Shares outstanding $ 85,000.00 $ 90,000.00 The tax rate is 32% You are required to:…