reported as cash. 1.Checking account balance $925‚000; certificate of deposit $1‚400‚000; cash advance to subsidiary of $980‚000; utility deposit paid to gas company $180. $ 2‚325‚000 Cash balance of $925‚000. Only the checking account balance should be reported as cash. The certificates of deposit should be reported as a temporary investment‚ the cash advance to subsidiary should be reported as accounts receivable‚ and the utility deposit should be identified as a receivable from the gas company.
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controller of Stern Corporation had ascertained the changes in accounts receivable and the allowance for doubtful accounts in 1998‚ a similar analysis was made of property‚ plant‚ and equipment and accumulated depreciation accounts. Again the controller examined the December 31‚ 1997‚ balance sheet [see Exhibit 1 of Stern Corporation (A)]. Also reviewed were the following company transactions that were found to be applicable to these accounts: 1. On January 2‚ 1998‚ one of the factory machines was sold
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implemented which can give immediate effect in order to avoid devastating FCB reputation as well as allowing FCB remained as the nation’s leading air cargo carrier. Issue Uncollectible debts‚ improper sales transaction‚ incorrectly recorded debtors’ account and abnormal transaction had caused Air Flat Cargo involved the possibility of fraud in a financial audit engagement. Problem Identified in Flat Cargo Berhad In 2006‚ during a routine financial audit‚ the auditors identified several suspicious
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Lecture 6 Receivables 1. Types of receivables (1)Accounts receivable: the amounts owed to the firm by customers on account from the sale of goods or services (2)Notes receivable: the amounts owing to the firm outside normal trade for which formal instruments of credit are issued evidencing the debt‚ and on which interest is generally payable (3) Other receivables include non-trade receivables such as interest receivable‚ loans‚ advances and GST receivable. 2. Accounting for A/R Accounts receivables are
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as debits. Asset accounts: Cash‚ bank‚ accounts receivable‚ inventory‚ land‚ buildings/plant‚ machinery‚ furniture‚ equipment‚ vehicles‚ trademarks and patents‚ goodwill‚ prepaid expenses‚ debtors (people who owe us money)‚ etc. Liability accounts: Accounts payable‚ salaries and wages payable‚ income taxes‚ bank overdrafts‚ trust accounts‚ accrued expenses‚ sales taxes‚ advance payments (unearned revenue)‚ debt and accrued interest on debt‚ etc. All of the accounts listed in this subsection
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| a. sales and sales discounts. | b. sales and cash receipts. | c. sales and sales returns. | d. sales and accounts receivable. | 2- Which of the following types of receivables would not deserve the special attention of the auditor? | a. Accounts receivables with credit balances. | b. Accounts that have been outstanding for a long time. | c. Receivables from affiliated companies. | d. Each of the above would receive special attention. | 3- Auditors are often concerned
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public which enabled them to tap into the capital markets. Early 1990’s‚ the company began to acquire dairy producers around the world in order to try to hide the growing debt. Parmalat entered into a series of bond issuances and securitization of receivables to generate cash. A series of other fraudulent accounting practices occurred during the following years. In December 2003‚ Parmalat was not able to make a U$ 150MM bond payment and raised the attention of the entire market. When the fraud was brought
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SUSQUEHANNA EQUIPMENT RENTALS GENERAL JOURNAL DECEMBER 2011 REF 1 DATE ACCOUNT 12/1/2011 Cash DEBIT CREDIT $200‚000 Capital Stock $ 200‚000 Cash $ 140‚000 Notes Payable $ 100‚000 $ 12‚000 $ 1‚000 $ 8‚000 $ 5‚200 $ 18‚000 $ 600 $ 2‚000 $ 5‚200 $ 600 Sold 20‚000 shares to John&Patty Driver 2 12/1/2011 Rental Equipment $240‚000 Purchased Rental equipment. Note due November 30‚ 2012
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scorecard‚ use only performance measures listed previously. You do not have to use all of the performance measures suggested by the managers‚ but you should build a balanced scorecard that reveals a strategy for dealing with the problems with accounts receivable and with unsold merchandise. Construct the balanced scorecard following the format used in Exhibit 12—8. Do not be concerned with whether a specific performance measure falls within the learning and growth‚ internal business process‚ customer
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= $326712.33 Reduction in annual sales= annual credit sales X cash discount X discount rate =40000000 X 45% X 3% = $540000 Avg. investment Account receivable= total
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