Question

Nancy Howe, your staff assistant on the April 30, 20X2, audit of Wilcox Company, was transferred to another audit engagement before she could complete the audit of unrecorded accounts payable. Her working paper, which you have reviewed and are satisfied is complete, appears below. Wilcox Company Unrecorded Accounts Payable April 30, 20X2 M-1-1 Invoice Date Amount Vendor and Description Hill & Harper-unpaid legal fees at Apr. 30, X2 (see lawyer's letter at M-4) $ 1,80@y Apr.1, X2 Drew Insurance Agency-unpaid premium at year-end on fire insurance for period Apr. 1, X2- Mar. 31, X3 (see insurance broker letter at J- 1-1). Payment made on May 7, 20x2. 4,68@y Apr.30,X2 Mays and Sage, Stockbrokers-advice for 100 shares of Madison Ltd. common stock (settlement date May 7, X2) 2,525y Lane Company-shipment received Apr. 30, X2 per receiver no. 3361 and included in Apr. 30, X2, physical inventory; invoice not yet received (amount is per purchase order) 6,263y 15,268 $ y-Examined document described. In my opinion, the $15,268 adjustment includes all material unrecorded accounts payable. N.A.H. May 29, X2 Prepare a proposed adjusting journal entry for the unrecorded accounts payable of Wilcox Company at April 30, 20X2. The amounts are material. (Do not deal with income taxes.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate computations.)

Answer 1

Credit ($) Debit ($) 1,800 4,680 Journal No. Date Account Titles and Explanation April 30, 20X2 Legal fees Isurance expense Commission expense Purchase Accounts payable (To record the adjustment for amount payable for various expense and purchase made) 2,525 6,263 15,268 Explanation: Since all the amounts are materail, thus all should be recorded. Please give as many likes for the hard work.