You are the trainee accountant of Gabriella Enterprises Co and are preparing the financial statements for the year-ended 30 September 2010. The financial statements are expected to be approved in the Annual General Meeting, which is to be held on Monday 29 November 2010. Today's date is 22 November 2010. You have been made aware of the following matters: Show
On 14 October 2010, a material fraud was discovered by the bookkeeper. The payables ledger assistant had been diverting funds into a fictitious supplier bank account, set up by the employee, which had been occurring for the past six months. The employee was immediately dismissed, legal proceedings against the employee have been initiated and the employee's final wages have been withheld as part‑reimbursement back to the company. Discuss whether the financial statements require amendment. Recommended textbook solutions
 Glencoe Accounting: First Year Course1st EditionGlencoe McGraw-Hill 548 solutions
Horngren's Cost Accounting: A Managerial Emphasis16th EditionMadhav V Rajan, Srikant M. Datar 1,008 solutions
Fundamental Financial Accounting Concepts10th EditionAlvin A Arens, Mark A Beasley, Randal J Elder 981 solutions
Financial Accounting9th EditionCharles T. Horngren 1,231 solutions
Terms in this set (26)Recommended textbook solutionsSets with similar termsOther sets by this creatorVerified questions
ACCOUNTING Verified answer
ACCOUNTING Below is a summary of all transactions of Pixar Toy Manufacturing for the month of August 2018. $$ \underline{Cash\ Transactions}\\ \begin{array} \mathrm{Cash\ collections\ from:} & \text{ }\\ \text{Customers} & \text{$\$ 93,500$}\\ \text{Sale of unused warehouse} & \text{$36,000$}\\ \text{Bank borrowing} & \text{$26,000$}\\ \text{Cash payments for:} & \text{ }\\ \text{Employee salaries} & \text{$(65,300)$}\\ \text{Office rent} & \text{$(19,000)$}\\ \text{Manufacturing equipment} & \text{$(46,000)$}\\ \text{Office utilities} & \text{$(11,800)$}\\ \text{Dividends to stockholders} & \text{$(6,700)$}\\ \text{Materials to make toys} & \text{$(27,700)$}\\ \end{array}\\ \underline{Noncash\ Transactions}\\ \begin{array} \mathrm{Sales\ to\ customers\ on\ account} & \text{$16,400$}\\ \text{Purchase of materials on account} & \text{$13,900$}\\ \text{Purchase equipment with promissory note to pay later} & \text{$18,500$}\\ \end{array} $$ Prepare a statement of cash flows for the month of August 2018, properly classifying each of the transactions into operating, investing, and financing activities. The cash balance at the beginning of August is $25,500. Verified answer ACCOUNTING Verified answer
ACCOUNTING A partial chart of accounts for Kits & Pups Grooming follows. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{301 Abe Shultz, Capital}\\ \text{105 Accts. Rec.—J. Alvarez} & \text{305 Abe Shultz, Withdrawals}\\ \text{120 Grooming Supplies} & \text{401 Boarding Revenue}\\ \text{130 Office Furniture} & \text{405 Grooming Revenue}\\ \text{140 Grooming Equipment} & \text{525 Salaries Expense}\\ \text{205 Accts. Pay.—Dogs & Cats Inc.} & \text{ }\\ \end{matrix} $$ 1. In your working papers, open an account in the general ledger for each of these accounts. 2. Record the March transactions on page 1 of the general journal. 3. Post each journal entry to the appropriate ledger account. 4. Prove the ledger by preparing a trial balance. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Mar 1} & \text{Abe Shultz invested $\$ 5,000$ in the business, Memorandum 51.}\\ \text{3} & \text{Abe Shultz transferred a desk and chairs valued at $\$ 1,200$ to the business, Memorandum 52.}\\ \text{5} & \text{Issued Check 551 for $\$ 300$ for grooming supplies.}\\ \text{7} & \text{Bought grooming equipment on account for $\$ 1,800$ from Dogs & Cats Inc., Invoice DC201.}\\ \text{9} & \text{Groomed Juan Alvarez's show dogs on account, $\$ 400,$ Sales Invoice 350.}\\ \text{12} & \text{Paid Dogs & Cats Inc. $\$ 900$ on account, Check 552.}\\ \text{15} & \text{Issued Check 553 for $\$ 500$ to pay the office secretary's salary.}\\ \text{18} & \text{Abe Shultz withdrew $\$ 1,000$ cash from the business, Check 554.}\\ \text{20} & \text{Deposited $\$ 1,400$ received from clients for boarding their pets, Receipts 477-480.}\\ \text{24} & \text{Wrote Check 555 for $\$ 900$ to Dogs & Cats Inc. to apply on account.}\\ \text{26} & \text{Received a check for $\$ 400$ from Juan Alvarez on account, Receipt 481.}\\ \end{array} $$ Verified answer Other Quizlet setsWhich of the following events after the reporting period would require adjustment in the financial statements?Which of the following events after the reporting period would require adjustment in an entity's financial statements? Bankruptcy of a customer, which occurs after the end of the reporting period and before the issuance of the statements, resulting in the loss of a trade receivable account.
What event comes after the reporting period?Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue.
Which of the following events after the reporting period are treated as adjusting events?Examples of Adjusting Events include: Settlement of litigation against the entity after the reporting date, in respect of events that occurred before the end of reporting period, may provide evidence of the existence and amount of liability at the reporting date.
Which of the following is an event that occurs after a reporting period but before the financial statements for that period have been issued or are available to be issued?A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued.
|
Which event after the reporting period would require disclosure in the financial statements quizlet?
Urheberrechte © © 2024 decemle Inc.
