Connect Access Card for Principles of Auditing & Other Assurance Services
21st Edition
ISBN: 9781260299366
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 15, Problem 22RQ
To determine
Explain the procedure to verify the recording of dividend entry in the
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In line with your audit with DAVE, Inc. financial statements, the company accountantpresented to you the balance sheet that follows. You reviewed the client’s accountingrecords and books based thereon. You discovered that books of accounts are inagreement in the said balance sheet as presented below:
DAVE, INC.STATEMENT OF FINANCIAL POSITIONDecember 31, 2021
ASSETS LIABILITIES AND OWNERS EQUITYCash P 80,000 Accounts Payable P 32,000Accounts Receivable 160,000 Notes Payable 64,000Notes Receivable 48,000 Capital Stock 160,000Inventories 400,000 Retained Earnings 432,000Total P 688,000 Total P 688,000
Further review and investigation of the company’s books revealed the followingomissions and errors which were not corrected during the year of errors:
2018 2019…
In line with your audit with DAVE, Inc. financial statements, the company accountant presented to you the balance sheet that follows. You reviewed the client’s accounting records and books based thereon. You discovered that books of accounts are in agreement in the said balance sheet as presented below:
DAVE, INC.
STATEMENT OF FINANCIAL POSITION
December 31, 2021
ASSETS
LIABILITIES AND OWNERS' EQUITY
Cash
P 80,000
Accounts Payable
P 32,000
Accounts Receivable
160,000
Notes Payable
64,000
Notes Receivable
48,000
Capital Stock
160,000
Inventories
400,000
Retained Earnings
432,000
Total
P 688,000
Total
P 688,000
Further review and investigation of the company’s books revealed the following omissions and errors which were not corrected during the year of errors:
2018
2019
2020
2021
Deferred expense
14,400
11,200
8,000
9,600
Deferred income
6,400…
In line with your audit with DAVE, Inc. financial statements, the company accountant presented to you the balance sheet that follows. You reviewed the client’s accounting records and books based thereon. You discovered that books of accounts are in agreement in the said balance sheet as presented below:
DAVE, INC.
STATEMENT OF FINANCIAL POSITION
December 31, 2021
ASSETS
LIABILITIES AND OWNERS' EQUITY
Cash
P 80,000
Accounts Payable
P 32,000
Accounts Receivable
160,000
Notes Payable
64,000
Notes Receivable
48,000
Capital Stock
160,000
Inventories
400,000
Retained Earnings
432,000
Total
P 688,000
Total
P 688,000
Further review and investigation of the company’s books revealed the following omissions and errors which were not corrected during the year of errors:
2018
2019
2020
2021
Deferred expense
14,400
11,200
8,000
9,600
Deferred income
6,400…
Chapter 15 Solutions
Connect Access Card for Principles of Auditing & Other Assurance Services
Ch. 15 - What does the trust indenture used by a...Ch. 15 - Long-term creditors often insist upon placing...Ch. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Mansfield Corporation has outstanding an issue of...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - What do you consider to be the most important...Ch. 15 - What is the primary responsibility of an...Ch. 15 - In the audit of a small corporation that issues...Ch. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Corporations sometimes issue their own capital...Ch. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 23RQCh. 15 - Prob. 24RQCh. 15 - Prob. 25RQCh. 15 - Prob. 26RQCh. 15 - Prob. 27QRACh. 15 - Prob. 28QRACh. 15 - Prob. 29QRACh. 15 - You are retained by Columbia Corporation to audit...Ch. 15 - Prob. 31QRACh. 15 - Prob. 32AOQCh. 15 - Prob. 32BOQCh. 15 - Prob. 32COQCh. 15 - Prob. 32DOQCh. 15 - Prob. 32EOQCh. 15 - When a client uses paper stock certificates, an...Ch. 15 - Prob. 32GOQCh. 15 - The auditors can best verify a clients bond...Ch. 15 - Prob. 32IOQCh. 15 - All corporate capital stock transactions should...Ch. 15 - Prob. 32KOQCh. 15 - Prob. 32LOQCh. 15 - Prob. 32MOQCh. 15 - Prob. 32NOQCh. 15 - Prob. 32OOQCh. 15 - An auditor most likely would inspect loan...Ch. 15 - Prob. 32QOQCh. 15 - Match the following definitions (or partial...Ch. 15 - Prob. 34PCh. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37P
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- In line with your audit with DAVE, Inc. financial statements, the company accountant presented to you the balance sheet that follows. You reviewed the client’s accounting records and books based thereon. You discovered that books of accounts are in agreement in the said balance sheet as presented below: DAVE, INC. STATEMENT OF FINANCIAL POSITION December 31, 2021 ASSETS LIABILITIES AND OWNERS' EQUITY Cash P 80,000 Accounts Payable P 32,000 Accounts Receivable 160,000 Notes Payable 64,000 Notes Receivable 48,000 Capital Stock 160,000 Inventories 400,000 Retained Earnings 432,000 Total P 688,000 Total P 688,000 Further review and investigation of the company’s books revealed the following omissions and errors which were not corrected during the year of errors: 2018 2019 2020 2021 Deferred expense 14,400 11,200 8,000 9,600 Deferred income 6,400…arrow_forwardIn line with your audit with DAVE, Inc. financial statements, the company accountant presented to you the balance sheet that follows. You reviewed the client’s accounting records and books based thereon. You discovered that books of accounts are in agreement in the said balance sheet as presented below: DAVE, INC. STATEMENT OF FINANCIAL POSITION December 31, 2021 ASSETS LIABILITIES AND OWNERS' EQUITY Cash P 80,000 Accounts Payable P 32,000 Accounts Receivable 160,000 Notes Payable 64,000 Notes Receivable 48,000 Capital Stock 160,000 Inventories 400,000 Retained Earnings 432,000 Total P 688,000 Total P 688,000 Further review and investigation of the company’s books revealed the following omissions and errors which were not corrected during the year of errors: 2018 2019 2020 2021 Deferred expense 14,400 11,200 8,000 9,600 Deferred income 6,400…arrow_forwardJones was engaged to examine the financial statements of Gamma Corporation for the year ended June 30. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded dividend income?a. Tracing recorded dividend income to cash receipts records and validated deposit slips.b. Performing analytical procedures and statistical sampling.c. Comparing recorded dividends with amounts appearing on federal information Form 1099.d. Comparing recorded dividends with a standard financial reporting service’s record of dividends.arrow_forward
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