Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 11RQ
To determine
Explain if the given transactions have any special significance.
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Which of the following provides the highest-quality evidence regarding the Valuation of recorded accounts payable?
Question 5 options:
Inspecting invoices for all cash disbursements during the year.
Performing analytical procedures.
Confirming balances with creditors and suppliers.
Recalculating the balance of accounts payable.
Which of the following accounting entries is correct?
a)
Record of issuance of bills receivable
B)
Cancellation of the rediscount transaction reserved for bills receivable at the beginning of the period
NS)
Posting of interest on notes receivable
D)
Register of notes receivable becoming worthless
TO)
Recording of the rediscount transaction for notes receivable at the end of the period
What adjustment is required when a check written in a prior month appears on the bank statement for the current month?
Chapter 11 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 11 - Explain the difference between a customers order...Ch. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - State briefly the objective of the billing...Ch. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQ
Ch. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - Prob. 17RQCh. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - Prob. 20RQCh. 11 - Prob. 21RQCh. 11 - Prob. 22RQCh. 11 - Give an example of a type of receivable...Ch. 11 - Prob. 24RQCh. 11 - Prob. 25QRACh. 11 - Prob. 26QRACh. 11 - Prob. 27QRACh. 11 - Prob. 28QRACh. 11 - Prob. 29QRACh. 11 - Prob. 30QRACh. 11 - Prob. 31QRACh. 11 - Prob. 32QRACh. 11 - Prob. 33QRACh. 11 - Prob. 34QRACh. 11 - Prob. 35QRACh. 11 - Prob. 36AOQCh. 11 - Which of the following would provide the most...Ch. 11 - Prob. 36COQCh. 11 - Prob. 36DOQCh. 11 - Prob. 36EOQCh. 11 - Under SEC rules, which of the following is not...Ch. 11 - Prob. 36GOQCh. 11 - Prob. 36HOQCh. 11 - Prob. 36IOQCh. 11 - Prob. 36JOQCh. 11 - Prob. 36KOQCh. 11 - Prob. 36LOQCh. 11 - Prob. 37OQCh. 11 - Prob. 38OQCh. 11 - An auditors working papers include the following...Ch. 11 - Prob. 40OQCh. 11 - Prob. 41OQCh. 11 - Prob. 42OQCh. 11 - Prob. 43OQCh. 11 - Prob. 44PCh. 11 - Prob. 45PCh. 11 - Prob. 46PCh. 11 - Prob. 47PCh. 11 - The July 31, 20X0, general ledger trial balance of...Ch. 11 - Prob. 49ITCCh. 11 - Prob. 50ECCh. 11 - Prob. 51EC
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- The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?arrow_forwardIn reconciling a bank statement, when a check from the previous month appears on the bank statement (but not the cash balance due to timing), how would you state it on the reconciliation? The note that was given: The difference in the beginning balances in the company’s records and the bank statement relates to checks #469 and #470, which are outstanding as of April 30, 2021 (prior month). Attached is an image of my current progress.arrow_forwardIn the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was a customer’s note for P25,000 collected for the account of the company which the company recognized in December among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit memos for December were: No. 14334 for service…arrow_forward
- 2. In determining the validity of accounts receivable, which of the following would the auditor consider most reliable? a. Direct telephone communication between the auditor and debtor b. Confirmation replies received directly from customers c. Credits to accounts receivable from the cash receipts book after the close of business at year end d. Documentary evidence that supports the accounts receivable balancearrow_forwardMatch each description to the appropriate term. Clear All Measures how frequently during the year accounts Net realizable value receivable are being turned into cash Amounts owed by customers Receivables documented by a formal written instrument of credit All money claims against Notes receivable other entities The difference between Accounts receivable accounts receivable and turnover allowance for doubtful accountsarrow_forwardPublic companies are required to use the Allowance Method to account for uncollectible Accounts Receivable. From an investor's perspective, why is this beneficial? How does the Allowance Method allow for better financial statement analysis as compared to the Direct Write-off Method?arrow_forward
- B. Record the entry for acceptance of promissory note in exchange of accounts receivable from McCormick Industries. C. Record the entry for interest accrued on promissory note received from McCormick Industries. D. Record the entry for interest received , from McCormick Industries , on the note's maturity date. E. Record the entry for payment received from McCormick Industries the principal on the note's maturity date.arrow_forwardOn March 31 of the current year, Fresh Flowers received a bank statement dated March 30. Prepare a bank statement reconciliation. Use Mar. 31 of the current year as the date. The following information is obtained from the March 30 bank statement and from the records of the business.arrow_forwardBank Reconciliation REQUIRED: A. Based on the application of the necessary procedures and appreciation of the above data, you are to provide the answers to the following: 1. How much is the unadjusted book receipts for August? 2. How much is the unadjusted book disbursements for August? 3. How much is the adjusted book receipts for August? 4. How much is the adjusted book disbursements for August? 5. How much is the adjusted cash balance as of August 31, 2022? B. Show the four column proof of cash as of August 31, 2022. C. Show the correct bank reconciliation, in good form, on August 31, 2022.arrow_forward
- Coasters Co. issued a note receivable to a customer. The customer made payment directly to the Coaster’s bank. The payment appeared on the month-end bank statement. How would this payment be adjusted in the bank reconciliation? Add to company records (book side) Subtract from company records (book side) Subtract from bank statement (bank side) Add to bank statement (bank side)arrow_forwardWhich of the following statements is true? Group of answer choices Companies typically report gross receivables on the balance sheet and disclose net receivables and the allowance for uncollectible accounts in the notes to the financial statements. Companies typically report net receivables on the balance sheet and disclose gross receivables and the allowance for uncollectible accounts in the notes to the financial statements. Companies typically report gross receivables and the allowance for uncollectible accounts on the balance sheet and disclose net receivables in the notes to the financial statements. Companies typically report net receivables and the net allowance for uncollectible accounts on the balance sheet and disclose gross receivables in the notes to the financial statements.arrow_forwardThe Umaasa Company included the following in its notes receivable as of December 31, 2022: Note receivable from sale of land. P1,320,000 Note receivable from consultation 1,800,000 Note receivable from sale of equipment 2,400,000 In connection with your audit, you were able to gather the following transactions during 2022 and other information pertaining to the company's notes receivable: On January 1, 2022, Umaasa Company sold a tract of land. The land, purchased 10 years ago, was carried on Umaasa Company's books at a value of P750,000. Umaasa received a noninterest-bearing note for P1,320,000. The note is due on December 31, 2024. There is no readily available market value for the land, but the current market rate of interest for comparable notes is 11%. On January 1, 2022, Umaasa Company finished consultation services and accepted in exchange a promissory note with a face value of P1,800,000, a due date of…arrow_forward
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