what isAccumulated Depreciation-F&F, Accumulated Depreciation-Eqpt,, Depreciation Expense-F&F, Depreciation Expense-Eqptl, Description of the Task:Sy General Services is owned and operated by Mr. Enre Sy, which has beenoperating for a year now. He wanted to know the status of his business's financialstanding to check if there's a profit or loss. He hired a bookkeeper to do the accountingtask since there is no proper documentation of all its business transactions. Your taskas a bookkeeper is to journalize all the undocumented transactions, prepare a generalledger for each account and prepare the adjusted trial balance so that the incomestatement can be prepared and help Mr. Sy to decide whether to continue his businessoperation or not. Below are the transactions of Sy General Services for December 2020.Dec. 01 Mr. Sy, owner of Sy General Services, invested P5,000 cash in thebusiness.02Bought supplies P700 on account.03 Rendered services P1,100 on account.On December 31, 2020 Sy General Services has an estimated uncollectible 1% of itsaccounts receivable.WADERSRequired:1. Journalize the transactions.2. Post the journal entries to the ledgers.3. Prepare the unadjusted trial balance.4. Prepare an adjusting journal entry.5. Prepare the adjusted trial balance.Prin100% Give Feedback to Micros 1 of 3Sy General ServicesChart of AccountsAccount Number01020304050607080910111213141516171819Account Name/Account TitleCashSuppliesAccounts ReceivableAllowance for Bad DebtsFurniture and FixturesAccumulated Depreciation-F&FEquipmentAccumulated Depreciation-Eqpt.Accounts PayableNotes PayableSy, CapitalSy, DrawingsService IncomeSalaries ExpenseRent ExpenseUtilities ExpenseBad Debts ExpenseDepreciation Expense-F&FDepreciation Expense-Eqpt.Print

Accumulated Depreciation - Accumulated Depreciation is the depreciation accumulated over the useful…

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what isAccumulated Depreciation-F&F, Accumulated Depreciation-Eqpt,, Depreciation Expense-F&F, Depreciation Expense-Eqptl,

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 51RSCQ: Ray, the owner of a small company, asked Holmes, CPA, to conduct an audit of the company’s records....

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Ray, the owner of a small company, asked Holmes, CPA, to conduct an audit of the company’s records. Ray told Holmes that the audit must be completed in time to submit audited financial statements to a bank as part of a loan application. Holmes immediately accepted the engagement and agreed to provide an auditor’s report within three weeks. Ray agreed to pay Holmes a fixed fee plus a bonus if the loan was granted. Holmes hired two accounting students to conduct the audit and spent several hours telling them exactly what to do. Holmes told the students not to spend time reviewing the controls but to concentrate on proving the mathematical accuracy of the ledger accounts and to summarize the data in the accounting records that support Ray’s financial statements. The students followed Holmes’ instructions and after two weeks gave Holmes the financial statements, which did not include footnotes because the company did not have any unusual transactions. Holmes reviewed the statements and prepared an unqualified auditor’s report. The report, however, did not refer to GAAP or to the year-to-year application of such principles. Briefly describe each of the ten standards included in the PCAOB guidance and indicate how the action(s) of Holmes resulted in a failure to comply with each standard.
What Do You Think? You work as an accounting clerk. You have received the following information supplied by a client, S. Winston, from the clients bank statement, the clients tax returns, and a variety of other July documents. The client wants you to prepare an income statement, a statement of owners equity, and a balance sheet for the month of July for Winston Company.
Assume you are a senior accountant and have been assigned the responsibility for making the entries to close the books for the year. You have prepared the following four entries and presented them to your boss, the chief financial officer of the company, along with the company CEO, in the weekly staff meeting: As the CEO was reviewing your work, he asked the question, What do these entries mean? Can we learn anything about the company from reviewing them? Provide an explanation to give to the CEO about what the entries reveal about the companys operations this year.
Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions.Required: Assess whether the junior accountant correctly proposes how to record each transaction. If incorrect, provide the correction.
You have been asked by a client to review the records of Sheffield Company, a small manufacturer of precision tools and machines. Your client is interested in buying the business, and arrangements have been made for you to review the accounting records. Your examination reveals the following information.1. Sheffield Company commenced business on April 1, 2018, and has been reporting on a fiscal year ending March 31. The company has never been audited, but the annual statements prepared by the bookkeeper reflect the following income before closing and before deducting income taxes. Year EndedMarch 31 IncomeBefore Taxes 2019 $83,772 2020 130,338 2021 121,189 2. A relatively small number of machines have been shipped on consignment. These transactions have been recorded as ordinary sales and billed as such. On March 31 of each year, machines billed and in the hands of consignees amounted to: 2019 $7,605 2020 none 2021 6,540 Sales price was…
The owner of a small company asked a CPA to conduct an audit of the company's records. The owner of the company told the CPA that the audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. The CPA immediately accepted the engagement and agreed to provide an auditor's report within three weeks. The owner agreed to pay the CPA a fixed fee plus a bonus if the load was granted. The CPA hired two accounting students to conduct the audit and spent several hours telling them exactly what to do. The CPA told the students not to spend time reviewing the internal controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that supported the company's financial statements. The students followed the CPA's instructions and after two weeks gave the CPA the financial statements which did not include any footnotes. The CPA reviewed the statements and…
The owner of a small company asked a CPA to conduct an audit of the company's records. The owner of the company told the CPA that the audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. The CPA immediately accepted the engagement and agreed to provide an auditor's report within three weeks. The owner agreed to pay the CPA a fixed fee plus a bonus if the loan was granted. The CPA hired two accounting students to conduct the audit and spent several hours telling them exactly what to do. The CPA told the students not to spend time reviewing the internal controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that supported the company's financial statements. The students followed the CPA's instructions and after two weeks gave the CPA the financial statements which did not include any footnotes. The CPA reviewed the statements and…
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:…
You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) 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…
You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) 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 Note: The tax rate is 32% Required: 1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about…
Rakesh started business on 1st Jan 2018 and had not maintained any kind of books to record transactions. On 30th June 2019 he spoke to his friend and discussed he is confused, do not know whether business making profit or loss. His friend asked him to consult you, as you are accountant and would help in maintaining the books of accounts. He approached you for the help, you have asked him about various transactions he had for last six months. Based on the following information which you have collected from his record, you are required to prepare the financial statement for business as on 30th June 2019 and also comment on his business using ratios. He revealed to you as 1st Jan 2019 the following: Cash Rs.8000, Bank Balance Rs.25000, Stock Rs.20000, Building Rs.10000, Furniture Rs.2000, Ajay (Debtor) Rs.2000, Anil (Debtor) Rs.1000, Kumar (Debtor) Rs.2000, Joseph (Creditor) Rs.5000, Loan taken from Karan Rs.10000. He also brings to your notice the transactions for the last six months.…