EP AUDITING+ASSURANCE...-MYACCT.LAB
16th Edition
ISBN: 9780134148656
Author: ARENS
Publisher: PEARSON CO
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Chapter 21, Problem 24DQP
a.
To determine
Provide solution for the situation given.
b.1
To determine
Explain whether adequate items are testes.
b.2
To determine
Explain the act that could be done if test-counted 150 items and found a substantial number of counting errors.
c.
To determine
Explain the action that can be taken if it is found that the liquid has solidified in most of the bottles.
d.
To determine
Identify the significance of the procedure and explain the action that could be taken.
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You are asked to travel to Milwaukee to observe and verify the inventory of the Milwaukee branch of one of your cilents. You arrive on Thursday, December 30, and find that the inventory procedures have just been started. You spot a railway car on the sidetrack ar the unloading door and ask the warehouse superintendent, Buck Rogers, how he plans to inventory the contents of the car. He responds "We are not going to include the contents in the inventory."
Later in the day, you ask the bookkeeper for the invoive on the carload and the related freight bill. The invoice lists the various items, prices, and extensions of the goods in the car. You note that the carload of goods in the car was $35,300. The frieght bill called for a payment of $1,500. Terms were net 30 days. The bookkeeper affirms the fact that this invoice is to be held for recording in January.
a. Does your cilent have a liability that should be recorded at December 31? Discuss.
b. Prepare a journal entry(ies), if required,…
When tracing using the cutoff information from the December 31 inventory count of Thermo-Tempur Mattresses, you note the following information:
Check the below image for information.
The documentation indicates that the last receiving report included in the inventory count was Receiving Report 1182. Receiving Reports 1183 and 1184 were for goods received on the company’s truck but not unloaded. Receiving report 1185 was for goods received on January 3.Required:Prepare a correcting journal entry assuming that Thermo-Tempur uses (a) a periodic inventory system and (b) a perpetual inventory system that was updated for the inventory count.
Ozzy Opticals is a full-service optical store providing eye exams and eyeglasses to customers. To maintain a wide selection of inventory frames, Ozzy purchases the eyeglasses from various manufacturers under different FOB terms. For each of the scenarios, determine which party is responsible for the inventory.
a. What is the significance of shipping terms?
b. $1,500 in eyeglass frames were shipped FOB shipping point to Ozzy Opticals but were damaged in transit during a hurricane. Who is responsible for the inventory?
c. $1,900 in eyeglass frames were shipped FOB destination to Ozzy Opticals but were lost in transit. Who is responsible for the inventory?
Chapter 21 Solutions
EP AUDITING+ASSURANCE...-MYACCT.LAB
Ch. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQ
Ch. 21 - Prob. 11RQCh. 21 - Each employee of the Gedding Manufacturing Co., a...Ch. 21 - Prob. 13.1MCQCh. 21 - Prob. 13.2MCQCh. 21 - Prob. 13.3MCQCh. 21 - Prob. 14.1MCQCh. 21 - Prob. 14.2MCQCh. 21 - Prob. 14.3MCQCh. 21 - Prob. 15.1MCQCh. 21 - Prob. 15.2MCQCh. 21 - Prob. 15.3MCQCh. 21 - Prob. 16DQPCh. 21 - Prob. 17DQPCh. 21 - Prob. 18DQPCh. 21 - Prob. 19DQPCh. 21 - Prob. 20DQPCh. 21 - Prob. 22DQPCh. 21 - Your client, Ridgewood Heating and Cooling,...Ch. 21 - Prob. 24DQPCh. 21 - Prob. 25DQPCh. 21 - Prob. 26DQPCh. 21 - Prob. 27DQPCh. 21 - Prob. 28DQPCh. 21 - Prob. 29DQP
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