Partnership Formation and Operations EXERCISES Exercise 1 –1 |1.a |Campos‚ Capital |14‚000 | | | | Allowance for Uncollectible Accounts | |14‚000 | | | | | | | |Goodwill
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capital (also known as net working capital) is a financial metric that measures the day-to-day operating liquidity of a business. It is defined as: Current Operating Assets (Accounts Receivable + Inventory) Minus: Current Operating Liabilities (Accounts Payable) Equals: Net Working Capital. Accounts Payable consist primarily of amounts owed to operating creditors‚ i.e.‚ suppliers of inventory; amounts owed to service providers; and amounts owed to employees (payroll). Operating
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acquiree liquidates‚ what are the key accounts raised by the acquiree and what accounts are transferred to these accounts? LIQUIDATION ACCOUNT Assets taken over Contra assets Liabilities arising during the Liabilities assumed liquidation process Reserves Liquidation expenses Consideration received Balance to Shareholders Distribution SHAREHOLDERS’ EQUITY ACCOUNT Consideration paid to shareholders Share capital Balance Liquidation Account Exercises Exercise 14.21 ACQUISITION
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Notes payable | 300‚000 | | | Fully secured debt | 900‚000 | | | New common stock to prepetition claimants | 375‚000 | 2‚775‚000 | | New common stock to old stockholders | $ (925‚000) | | P 17-1 1 Entries on trustee’s books: March 1‚ 2011 | Cash | $ 4‚000 | | | Accounts receivable — net | 8‚000 | | | Inventories | 36‚000 | | | Land | 20‚000 | | | Buildings — net | 100‚000 | | | Intangible assets | 26‚000 | | | Accounts payable
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to the internal controls of Woolworths‚ and will look to describe and analyse them with the use of flow charts. The report will then move onto give details of an audit program that has been designed to test the internal controls of Woolworth’s accounts payable. Moreover‚ possible ways of how controls could be overridden as well as how the overall system could be realistically improved will also be discussed within the report. Business Introduction Woolworths is a supermarket chain situated within
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What should the controller of Lexsteel do in order to address the potential problems within the corporation? • The controller became aware of the potential problems with the accounts payable system because of the discussion made with the external auditors. • Each branch manager is given the authority to order materials and issue emergency purchase orders directly to the vendors. • Physical counts of raw materials are not performed since there is a cost-effective computerized perpetual inventory
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Team C analyzed the accounts payable‚ accounts receivable‚ payroll‚ and inventory systems for Kudler Fine Foods. Kudler would now like to see a proposed audit schedule for these systems. The team will distinguish between the types of audits that may use for each process. The team will also recommend the most appropriate audit for each process and explain how to conduct the audits. Identifying events that may prevent reliance on auditing through the computer will also be presented to Kudler for
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related to cutoff issues. 10. The accounts payable department keeps copies of purchase orders and receiving reports‚ that will be compared to the related invoice‚ to be sure that the invoices represent goods that were ordered and received. 11. The accounting department is responsible for implementing internal controls over each business process. 12. Independent reconciliation of the accounts payable subsidiary ledger to the general ledger control account will help to assure that all inventories
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liabilities are obligations whose liquidation is reasonably expected to require use of existing resources properly classified as current assets‚ or the creation of other liabilities. Accounts Payable or trade accounts payable‚ are balances owed to others for goods‚ supplies‚ or services purchased on open account. Notes Payable are written promises to pay a certain sum of money on a specified future date and may arise from purchases‚ financing‚ or other transactions. The portion of bonds‚ mortgage notes
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JOURNAL Account Debited Post. General Ref. Debit Rent Expense √ 1‚235.00 Acct Pay Debit Belk Suppliers Greene Inc. Harris Co. √ √ 4‚552.00 2‚158.00 3‚877.00 10‚587.00 (202) GENERAL JOURNAL Oct Oct 10 17 Purchases Debit Purch Disc Credit 1‚995.00 1‚235.00 (√) Date Page 3 Acct Pay Credit 4‚552.00 2‚658.00 3‚877.00 11‚087.00 (202) Description Accounts Payable Purchases Returns & Allowances Office Supplies Accounts Payable/Doyle
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