Acquisition and Payment Cycle – Audit Program Design Part II Acquisitions General: 1.) Review purchase and expenditure procedures with accounts payable personnel‚ receiving personnel‚ cashier‚ and vice president of finance department. 2.) Examine general ledger for large and unusual disbursement amounts. 3.) Determine whether purchases greater than $5‚000 have additional approval. Audit Objective: Recorded acquisitions are for goods and services received. 1.) Examine documents in
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cash and $4‚000 on account. 3. The company purchased supplies for $750 cash. 4. The company receives $4‚100 in cash revenue and $5‚400 in accounts receivable. 5. The company paid $1‚500 cash for accounts payable. 6. The company paid a $2‚000 dividend. 7. The company paid $800 cash for rent. 8. The company received a payment for accounts receivable. 9. The company paid its employees’ salaries in the amount of $3‚000. 10. The company paid their utility expense on account. Determine how
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Problem #12 Journal Merchandising Date | Accounts Title & Explanations | Debit | Credit | April 3 | Purchase | 75‚000 | | | Accounts Payable | | 75‚000 | | Purchased lounge chairs terms 1/10‚ n30 | | | | | | | 7 | Accounts Receivable | 19‚200 | | | Sales | | 19‚200 | | Sold chairs terms 2/10‚ n/30 | | | | | | | 8 | Purchase | 24‚000 | | | Accounts Payable | | 24‚000 | | Purchased patio umbrella terms 1/10‚
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| Account | Debit | Credit | Debit | Credit | Debit | Credit | Cash | 15200 | | | | 15200 | | Account Receivable | | | 650 | | 650 | | Advertising Supplies | 2500 | | | 400 | 2500 | 400 | Prepaid Insurance | 600 | | | 200 | 600 | 200 | Office Equipment | 5000 | | | | 5000 | 0 | Accumulated Depreciation | | | | 100 | | 100 | Notes Payable | | 5000 | | | | 5000 | Account Payable | | 2500 | | 120 | | 2620 | Salaries Payable |
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Introduction Action Standard Manufacturing Company is a producer of top quality lawnmowers‚ garden tractors‚ tillers‚ and implements. It was established in 1920 and is nationally known‚ having growth steadily. In 2005‚ it made a decision to embark on a rapid expansion program to take the advantage of the growing market for all purpose tractor/lawnmowers/snow blower machines. So the product line expansion led to increase in assets of approximately 50% in both 2006 and 2007. Dianne Covington‚ financial
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Financial statements will match up revenues to expenses incurred while earning them. This more accurately shows results of operations. No receivables At the point of sale a receivable is recorded even though payment was not received No payables Payables are taken down when payment is not made at time of purchase. No tracking of partial payments available. Revenues and expenses are recorded in full‚ even if payments are made over time. The
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$6‚340 Accounts Receivable Prepaid Insurance 700 Equipment 8‚000 Accounts Payable Property Taxes Payable 750 Common Stock Retained Earnings Service Revenue 7‚690 Salaries Expense 4‚200 Advertising Expense Property Tax Expense 900 $28‚580 Credit $2‚750 4‚100 5‚700 6‚000 1‚100 $19‚650 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance‚ Accounts Payable
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or one creditor in a single account. (This is one of the advantages of using subsidiary ledgers ("Advantages of Subsidiary Ledgers").) | | | | subsidiary ledgers free the general ledger of excessive details. (This is one of the advantages of using subsidiary ledgers ("Advantages of Subsidiary Ledgers").) | | | | subsidiary ledgers eliminate errors in individual accounts. (Correct! Subsidiary ledgers help locate‚ not eliminate‚ errors in individual accounts ("Advantages of Subsidiary
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2010 and 2012 are both over 2.0‚ which is larger than the miscellaneous manufacturing company (1.64). This means in liquidity Mattel did better than average of manufacturing industry. 2.2 Quick Ratio |Year |Cash+Marketable Securities+Accounts Receivalbe/ Current Liabilities | |2010 |($1‚281‚123+$1‚146‚106)/$1‚350‚282=1.79 | |2011 |($1‚369
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MANAGING DIRECTOR MANAGING DIRECTOR X SERCVICE FACILTY MANAGER SERCVICE FACILTY MANAGER ACCOUNTS DEPARTMENT MANAGER ACCOUNTS DEPARTMENT MANAGER BOOKEEPER/ ACCOUNTANT BOOKEEPER/ ACCOUNTANT ACCOUNTS PAYABLE/PAYROLL ACCOUNTS PAYABLE/PAYROLL CUSTOMER SERVICE OFFICE CUSTOMER SERVICE OFFICE ACCOUNTS RECIEVABLE ACCOUNTS RECIEVABLE ORGANISATION STRUTURE OVER VIEW CHEN & LEE is a tax firm established in 2000.Firm Is a comprised of two managaing
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