1. Determine any irregularity in the receivables of the entity 2. Explain/Compute how the irregularity was committed.
Q: Totem group is planning to purchase a new printing machine to replace a current machine. The cost of…
A: Net Present Value of New Machinery Particulars Year 0…
Q: Intangible Asset & Impairment PT Cabo is operating in the cosmetics industry. A company-owned…
A: Given :- Cost of machine is $50,000,000 Useful life is 10 years Calculation of depreciation using…
Q: The following units of an item were available for sale during the year: Beginning inventory 35 units…
A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell…
Q: On January 2, 2021, Hey Company leased a heavy equipment to be used in its construction business…
A: Lease Interest Expenses: It is the excess rent paid over actual rent payable and advance rent…
Q: #2 has enough demand to sell 700 units of each product per month. Each pre an. The direct materials…
A: X5 Y8 Z9 Direct material $ 24.00 $ 16.50 $ 12.00 Cost per pound $ 3.00…
Q: CP 14-8 Assume the following income statement and balance sheet information: Service revenue (all…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…
A:
Q: what is the value of N?
A: Net pay is the pay which has been received by the employee from the employer in hand means net pay…
Q: A machine that cost $24,000 and on which $2,000 of Accumulated Depreciation has been recorded was…
A: Lets understand the basics. Journal entry is required to record the financial event or transaction…
Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…
A: The shares designated to be valued at fair value through other comprehensive income are to be…
Q: In 2014, Angela Corporation has a net capital loss of $80,000. Angela Corp. also had net capital…
A: Capital loss: It implies to the sale of capital asset at a value that falls less than it's purchase…
Q: An entity reported the following assets and liabilities at year-end: Carrying amount Tax…
A: Deferred Tax Liability A liability for paying the taxes in the future is denoted by Deferred tax…
Q: Given the following information, determine fees earned. Wages expense equals $4,400, supplies…
A: Solution Concept The income statement is prepared to calculate the net income Income statement is a…
Q: 4. A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the…
A:
Q: Naruto is an investor in Hokage Corporation. In 2019 he has 1,000 share holdings acquired at P120…
A: Capital gains/ losses on trading on equity: when the shares purchased and sold then there may be…
Q: Compute for the variances of the problem using the information given. Answer the numbers only up to…
A: Here, the standard cost has been used for the calculations. However, for labor rate variance…
Q: During the year 2019, Nice Company acquired 10,000 ordinary shares of Easy Company for P250,000 plus…
A: Unrealized gain: It implies to an increase in the fixed asset's value that is held by an investor…
Q: The following selected accounts and their current balances appear in the ledger of Kanpur Co. for…
A: The balance sheet represents the financial position of the company including the assets,…
Q: Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31…
A: Req-(a) Accounts Receivable Percent Uncollectible (%) Estimated Uncollectible (A)…
Q: Noora Company manufactures quality hair care product. The ingredients are combined in the mixing…
A: A weighted average is a method that analyzes the relative value of the variables in a collection of…
Q: Which are reasonable range names to give each type of expense? Apr, May, Jun, Jul, Aug, Sept, Oct,…
A: Expenses are the obligations which have to be incurred in the business to earn revenues for example,…
Q: Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The…
A: The income statement is prepared to record the revenues and expenses of the current period.
Q: Corrective action has been taken by an auditee immediately after the identification of a reportable…
A: Auditors may come across various errors which they may refer to the management. Management also…
Q: Theirs Company owns the properties below, which it leases out under operating leases to the…
A: In consolidated financial statements, investment property shall be presented only of subsidiaries
Q: Me Company owns land and building being used for its operations. Data relating to the land and…
A: Lets understand the basics. As per IAS 40 "Investment property", investment property can be…
Q: A registered producer at VAT department sold product to wholesaler registered also for L.E 6000 who…
A: Calculation of Gross Value of Invoice Producer Whole-Saler Retailer Price…
Q: On Oct. 1, 2020, Shaw Company purchased a machine for P1,260,000 that was placed in service on Nov.…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Intangible Asset & Impairment PT Cabo is operating in the cosmetics industry. A company-owned…
A: a. First of all we have to calculate impairment loss for the year 2021. Impairment loss (2021) =…
Q: What are some advantages of using IT and audit software when conducting an audit?
A: The audit can be defined as the independent examination of internal control, accounting records, and…
Q: John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The…
A: Present value of cash flows from the store for years 1 to 5=Annual cash flows×PVIFA(7%, 5 years)…
Q: Sales for April, May, June, and July will be $310,000, $330,000, $320,000, and $340,000,…
A: Account receivable shows the amount of sales which is not received yet. In simple, it represents the…
Q: Luma, who works for Microsoft Corp and owns 10,000 shares of American Airlines borrowed the…
A: IRS has a concept of imputed interest. Imputed interest is calculated when the loan is lent at no…
Q: What is the operating cash flow for a firm with $500,000 profit before tax, $100,000 depreciation…
A: Tax = $500,000 x 21% = $105,000 Depreciation expense = $100,000 Profit before tax = $500,000
Q: PROBLEM 2. On January 1, 2018, Inside Out Corporation had 30,000 ordinary shares of UP Company…
A: Number of shares purchased = 30000 bonus shares = 30000 x 20%= 6000 shares Number of shares sold =…
Q: The totals from the first payroll of the year are shown below. Total FICA State Union Net FICA НІ…
A: Solution:- Given, We have the information of totals from the first payroll of the year.
Q: On Jan. 1, 2021, Bee Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par…
A: The loan is the amount in which one party lends money to another party. The money is lent for a…
Q: A journal entry for a $700 payment for Prepaid Rent was erroneously recorded as a debit to Prepaid…
A: Introduction:- Journal entries used to record business transactions. Journal entries play vital role…
Q: a. P15,000 b. P62,000 C. P77,000 d. P80,000 70. How much should be recognized as R&D expense? a.…
A:
Q: JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information…
A: Introduction: Direct materials are the resources utilized to manufacture a product in accounting.…
Q: Question. A calendar-year taxpayer spends $10,000 in December on a file server and peripherals. The…
A: Straight-line depreciation is a way of accounting for a fixed asset's carrying value throughout its…
Q: Sally Company specializes in office chairs. The company is in the process of preparing detailed…
A: The budget is prepared to estimate the number of units to be produced during the period and number…
Q: Partner A first contributed P50,000 of capital into an existing partnership on March 1, 2021. On…
A: Partnership means the two or more person of the agreement of buiness firm and profit and loss…
Q: 00 shares at P70 per shar P72 per share. What totall as a result of selling 15,00
A:
Q: Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are…
A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods:…
Q: He Company owns land and building classified as investment property . The land and building is…
A: Fair value gain for the year 2021 = Fair value of Investment property as on Dec 31, 2021 - Fair…
Q: At the end of the current year, $27,480 of fees have been earned but have not been billed to…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. The…
Q: NewTech purchases computer equipment for $264,000 to use in operating activities for the next four…
A: Depreciation is the reduction in the value of an asset over a useful life of the asset. It is an…
Q: On 1 January 20X3, XYZ bought a $200,000 5% bond at nominal value. Interest is received in arrears.…
A: Bonds are amortized in the books of accounts by the difference between the interest expense and…
Q: FIFO and LIFO Costs Under Perpetual Inventory System The following units of an item were available…
A: FIFO states that the inventory purchased first would be sold first. Whereas, LIFO states that the…
Q: A manufacturer is going to modify a material handling system. This modification will result in first…
A: The amount that could be justified now for system modification = Present value of all future savings
please answer all the following and give the complete solutions on how you come up with that .
Step by step
Solved in 2 steps
- Problem 3. The books of Marikit’s Service, Inc. disclosed a cash balance of P687,570 on December31, 2020. The bank statement as of December 31 showed a balance of P547,800. Additionalinformation that might be useful in reconciling the two balances follows:a. Check number 748 for P30,000 was originally recorded on the books as P45,000.b. A customer’s note dated September 25 was discounted on October 12. The note wasdishonored on December 29 (maturity date). The bank charged Marikit’s account forP142,650, including a protest fee of P2,650.c. The deposit of December 24 was recorded on the books as P28,950, but it was actually adeposit of P27,000.d. Outstanding check totaled P98,850 as of December 31.e. There were bank service charges for December of P2,100 not yet recorded on the books.f. Marikit’s account had been charged on December 26 for a customer’s NSF for check forP12,960g. Marikit properly deposited P6,000 on December 3 that was not recorded by the bank.h. Receipts of December 31…Problem 1 - Prepare a bank reconciliationThe following information relates to M Park Corporation for the month of March 2022:1. Cash balance per books, March 31 was $20,647.002. Deposits in transit, March 31 were $8,140.003. The March bank service charge was $34.00 and has not been recorded by the company.4. Outstanding checks, March 31 were $3,905.005. An electronic funds transfer (EFT) collected by the bank was $590. The collection has not been recorded by M Park Corporation.6. The bank made an error and recorded a $3,000 deposit twice.7. Cash balance per bank, March 31 was $19,968.00PurposeThe purpose of this problem is to demonstrate an understanding of preparing a bank reconciliation.InstructionsAfter analyzing the data, prepare a bank reconciliation for M Park Corporation at March 31st. Reconcile the cash balance per the bank firstand list items that increase the cash balance first. Also, round amounts to two decimal places. Please provide explainations, thanks! (Question 28 On July 31, 2028, Massive Ltd. had a cash balance of $6,793 in its general ledger. The bank statement from the Bank of Auditing on that date showed a balance of $6,578. A comparison of the bank statement with the Cash account revealed the following: a. Cash receipts for July 31 recorded on the company's books were $3,500, but this amount does not appear on the bank statement. b. A cheque of $5,100 made by another company was incorrectly deducted to Massive's account by the Bank of Auditing. c. The bank statement included service charges and debit and credit card processing fees of $65. d. Cheques outstanding on June 30 totaled $6,200. Of these, $4,600 worth cleared the bank in July. All cheques written in July cleared the bank in July. e. The bank statement included electronic collections from customers on account totaling $8,800. Massive had not recorded the EFT. f. Salaries of $4,800 were paid electronically during the month. The company has already recorded these. g. An…
- PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November was customer's note for P300,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000. The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000. The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance of P1,456,800. Bank debit memos for December were: No. 121 for service…Problem Solving. 1. Assuming the following information for Uno Company: bank balance P65,000; book balance ? ; deposit in transit P11,000; outstanding check P10,000; credit memo P2,000; and debit memo P500. How much is the adjusted bank balance?|$1: Counting the petty cash fund and revolving fund of the client company provides evidence of the existence and rights assertion.$2: By classifying as current liability an obligation that will become due the next accounting period, the management is asserting that its liquidation will require the use of current assets or the creation of other current liabilities.S3: If the financial statement shows that the balance of the cash in bank in the current assets represents excess cash after recording all receipt and disbursement transactions, the management is asserting that the cash in bank is “complete,” A: Ifall statements are correct.B-If only one statement is correct.C- If only two statements are correct.D- If all statements are incorrect.
- Case 3 In connection with the audit of the financial statements of Malapascua Company, the audit manager provided you the instructions to examine the details of the company's accounts receivable. You have extracted the following balances from the trial balance prepared by your client as of December 31, 2021: Accounts receivable Allowance for bad debts - beginning us P1,600,000 43,500 Your audit client provided you the schedule of the accounts receivable subsidiary ledger based on ageing policy: Accounts with debit balances Page |163Problem 1.5: Anne Corporation accounts for its sales under the cash basis. Anne Corporation cash receipts books amounted to P 1,400,000. Total collections from customers, including cash sales made and recoveries of previously written-off accounts. Based on Audit investigation, they revealed that the additional information are the following: Accounts receivable, January 1, 2021 Accounts receivable, December 31, 2021 Notes receivable, trade outstanding, January 1, 2021 Notes receivable, trade outstanding, December 31, 2021 Sales discount taken by customers Sales returns before collections were made (Evidenced by issued credit memos) Sales returns after collections were made, thus refunds were given Write-off worthless accounts receivable Cash recoveries from accounts previously write-off 100,000 140,000 80,000 90,000 40,000 25,000 5,000 30,000 10,000 Requirements: Compute for the following under the accrual basis of accounting: a. Gross sales for the year b. Net sales for the year c.…Description DEP Customer deposit INT Interest earned SF Service feesNOTE Note collected CHK Customer check NSF Nonsufficient fundsEFT Electronic funds transfer DC Debit card Additional information: The difference in the beginning balances in the company’s records and the bank statement relates to check number 530, which is outstanding as of June 30, 2024. The debit card transaction for the purchase of equipment on 7/19 is correctly processed by the bank. The EFT on July 26 in the bank statement relates to the purchase of office supplies. Required:2. Record the necessary cash adjustments.
- Problem 3 Serato Company keeps all its cash in a checking account. An exarnination of the entity's accounting records and bank statement for the month ended December 31, 2020 revealed a bank statement balance of P8,469,000 and a book balance of P8,524,000. A deposit of P950,000 placed in the bank's night depository on December 29 does not appear on the bank statement. Checks outstanding on December 31 amount to P270, 000. The bank statement shows that on December 25, the bank collected a note for Serato Company and credited the proceeds of P935,000 to the entity's account. The proceeds included P35,000 interest, all of which Serato Company earned during the current period. Serato Company has not yet recorded the said collection. Serato Company discovered that check number 1000759 written in December for P183,000 in payment of an account had been recorded in the entity's records as P138,000. Included with the December 31 bank statement was an NSF check for P250,000 that Serato Company…cam - Intermediate Accounting 1.docx Open with Google Docs For Nos. 26- 27 Tron Company has provided the following data in relation to its bank reconciliation for April 2019. From March 31 bank recondliation: Deposit in transit Outstanding checks P6,800 15,600 April 2019 data: Per Bank Per Book Balance, March 31 Deposits reflected 296,560 190,400 287,760 196,000 Checks reflected (246,800) (244,000) Note collected 80,000 Service charge (480) 319,680 Balance, April 30 239,760 The checks reflected by the bank in April includes a P6,000 check drawn by Boron Company. 26. How much is Iron's deposits in transit at April 30? a. P12,400 b. P18,000 C. P1,200 d. P5,600 27. How much is Iron's outstanding checks at April 30? P27,600 b. a. P34,400 P18,800 d. P24,800 C. For Nos. 28-30 Page 4 / 5 The entity sold P1,500,000 of accounts receivable for cash proceeds of P1,390,000. No bad debt allowance was associated with these acHow effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S…