“Goode Company “Adjusted Trial “Income “Balance “Balance “Statement “Sheet “Account Titles “Dr “Cr “Dr “Cr “Dr “Cr “Cash “13752 “13752 “Accounts Receivable “7840 “7840 “Prepaid Rent “2280 “2280 “Equipment “23050 “23050 “Accumulated Depreciation “4921 “4921 “Notes Payable “5700 “5700 “Accounts Payable “5672 “5672 “Common Stock “25000 “25000 “Retained Earnings “5960 “5960 “Dividends “3650 “3650 “Service [...]
Exercise 1-1 Assets Liabilities Stockholders ‘ Equity a 90 ,000 50 ,000 40 ,000 b 110 ,000 40 ,000 70 ,000 c 94 ,000 34 ,000 60 ,000 90 ,000 – 50 ,000 40 ,000 40 ,000 70 ,000 110 ,000 94 ,000 – 60 ,000 34 ,000 Exercise 1-5 Assets Liabilities Owners ‘ Equity [...]
1 ) Date Account Titles and Explanation P . R . Debit Credit Office Salaries Expense 52 1533 .83 FICA Taxes Payable – OASDI 20 .1 1243 .10 FICA Taxes Payable – HI 20 .2 290 .73 Payroll Taxes Expense 56 1533 .83 FICA Taxes Payable – OASDI 20 .1 1243 .10 FICA Taxes Payable [...]
ANSWERS WITH COMPUTATION 1 . Cash 45 ,000 Property , Plant Equipment 200 ,000 Accounts Receivable 90 ,000 Inventory 75 ,000 Total Assets 410 ,000 The correct answer is B 2 . Total Assets 410 ,000 Less : Accounts Payable 80 ,000 Long-Term Debt 60 ,000 Capital Stock 150 ,000 Retained Earnings 120 ,000 The [...]
Question 2 The accruals concept states that revenue incurred in a particular period should be matched with expenditure incurred in that period . Such principle gives rise to the accruals and prepayments adjusting entries .For example an organization pays the salaries on a monthly basis four days after the end of the month . If [...]
Problem 14-37 a ) The key audit objectives of accounts payable are completeness ,accuracy , rights and obligations and existence of trade creditors . With respect to trade creditors the auditor main aim is to ensure that all transactions were recorded at the right time and the correct amount .This is particularly important because understatement [...]
“Problem 15-2 “Europa west “a “General Journal “13-Nov “Inventory “1405000 “Accounts Payable “1405000 “Purchase of automobiles from Stockholm Motors for SK20 ,000 ,000 when “exchange rate is .07025 per krona “SK20 ,000 ,000 CH .07025 1 ,405 ,000 “01-Jan “Loss on fluctutations in foreign exchange rates “24400 “Accounts Payable (Stockholm Motors “24400 “Adjusting balance of [...]
