Final

On December 31, MD purchased lumber costing $4,410 which was received that day; however, it was not included in the inventory count or in accounts payable. The issue is whether the inventory should be included in the December 31, 2014 year end or not until the lumber was put into production in January.

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

DECEMBER 18 PAYROLL (Use the payroll file you saved under filename 12-18 your name to answer the following questions for the November 6 payroll.)

Complete the stockholders' equity section at December 31, 2011. (Order multiple accounts in the standard format used in the text. Enter all amounts as positive amounts and subtract where necessary.)

3. What was the balance of Walmart’s allowance for doubtful accounts (ADA) as of January 31, 2012?

The following transactions took place during the year (all purchases and services were acquired on account):

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)

1. Given the following information about purchases and sales during the year, compute the cost to be assigned to ending inventory under each of three methods: (a) average-cost, (b) FIFO, and (c) LIFO. (Show your work.)

6. The accounts effected are warranty liability, sales returns, cost of goods sold, and inventory.

Leslie Fay loss a huge amount from a receivable of Allied/Federated Department Stores after the

Les Pulaski, the supervisor of a new division of Innovation Corporation, received annual bonus based upon the number of sales that exceeds the breakeven point of the company (Crosson & Needles, 2014). She was given bonus for the mentioned year as well. But, a review of the sales for that year confirmed that 7,500 units were returned by the customer to the company. These returned were included when calculating her bonus. Researching further into this situation, she found out that the returned products were labeled as overhead expense and the cost for the 7,500 units were charged to the overhead account (Crosson & Needles, 2014). Due to this accounting error, it appeared that the sales of the product exceeded the breakeven point

Tracy Madding is an attorney opening her own office on March 1, 2010. She operates her business as a sole proprietorship. The office is located at 1345 Main Street, Lodi, CA 95240. The owner of the building, Apex Business Management, signed Tracy to a one-year lease for $800 per month. The IRS issued her an employer identification number of 15-6789545. Tracy called the local telephone company, Pacific Bell, and arranged for two lines: telephone 209-555-9899; fax 209-555-3211.

• Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A & B, especially the Consolidated Statements of Income and the Balance Sheets on pp. A4, A6, B1, & B2 of Financial Accounting.

Notice that the date of the charges is 04/02/13, and the period is 04/01/13 to 04/30/13. This processor posts changes on the first business day of the month for the prior month. The charges do not relate to the items submitted in April; they relate to the items submitted in March. Table 3 below, matches the amount of the credit card sales with the the discount for MasterCard, VISA, and Discover; sales are taken for the March statement; discounts were taken from the April statement, because they appeared at the beginning of

Rebates from suppliers for purchases in later periods were recorded as income in the period the rebate was received or negotiated.