FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 1, Problem 1.3IP
(a)
To determine
Introduction:
Annual Report is a comprehensive financial report that shows all the business activities that takes place throughout the previous financial year. Its purpose is to provide the complete financial information of a company’s financial activities to its users in order to help them analyze and take well informed decisions.
To explain: The name of the accounting firm performed the audit of Company L’s financial statements.
(b)
To determine
To explain: The address of Company L’s corporate headquarter.
(c)
To determine
To report: The reporting currency of Company L.
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You have been assigned to audit the financial statements of SAN MIGUEL CORPORATION for the year 2017. The company is a dealer of appliances and has several branches in Metro Manila. Its main office is in Makati City. You were given by the company controller the unadjusted balances of the items to be included in the company’s statement of financial position and statement of income as of and for the year ended December 31, 2017. Audit findings are as follows:
I. AUDIT OF CASH A cash count was conducted by your staff on January 7, 2018. The petty cash fund of P60,000 maintained by the company on an imprest basis reflected a balance of P22,750. Unreplenished expenses totaled P37,250 of which P9,510 pertains to January 2018.
You were furnished a copy of the company’s bank reconciliation statement with BPI Bank as follows: Balance per bank P277,994 Add: Deposit in transit 248,836 Bank debit memos 712,750 Returned check 63,000 Less: Outstanding checks (174,580) Book error (72,000)
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All companies are required to disclose in their annual reports the amounts paid to their auditors for both the financial report audit and any other services performed for the company.
Required
Obtain a copy of a recent annual report (most companies make their annual reports available on the company's website) and find the disclosures explaining the amounts paid to auditors. How much was the auditor paid for the audit, non-assurance, or other services?
For the 2021 audit of the financial statements, you are tasked to audit EMPLEO
Corporation's abilities. The following information relates to the obligations of
EMPLEO Corporation as of December 31, 2021:
Accounts payable for goods and services purchased on open account amounted
to P350,000 on December 31, 2021. This amount was gross of a supplier's debit
balance of P30,000, On the other hand, the testing of the accounts receivable
account revealed that a customer's credit balance of P50,000 was netted against
the balance of the accounts receivable
At December 31, 2021, EMPLEO declared a cash dividend at PO.50 per share on
its P10 par value ordinary share capital, payable at January 12, 2022, to
shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had
1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares.
The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a with…
Chapter 1 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - What are the three main types of business...Ch. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - What are the three main categories of the...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Which of these items are liabilities of White...Ch. 1 - How are each of the following financial statements...Ch. 1 - What is the purpose of the management discussion...Ch. 1 - Prob. 19QCh. 1 - Prob. 20QCh. 1 - Prob. 21QCh. 1 - Prob. 1.1BECh. 1 - Match each of the following types of evaluation...Ch. 1 - Indicate in which part of the statement of cash...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.6BECh. 1 - Indicate which statement you would examine to find...Ch. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DIECh. 1 - Prob. 1.2DIECh. 1 - Prob. 1.3bDIECh. 1 - Here is a list of words or phi uses discussed in...Ch. 1 - Prob. 1.4ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.1APCh. 1 - Financial decisions often place heavier emphasis...Ch. 1 - INTERPRETING FINANCIAL STATEMENTS Xerox was not...Ch. 1 - Prob. 1.5EYCTCh. 1 - Prob. 1.9EYCTCh. 1 - Prob. 1.10EYCTCh. 1 - Prob. 1.1IPCh. 1 - Prob. 1.2IPCh. 1 - Prob. 1.3IP
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