JJ is a public for profit company with net income before taxes of $1,000,000 and total...
- JJ is a public for profit company with net income before taxes
of $1,000,000 and total assets of $5,000,000. During the year,
Wayne CPA firm discovered misstatement in the following accounts.
Inventory was misstated by $27,000; Accounts Receivable was
misstated by $20,000, and PPE was misstated by $2,000. Which
accounts if any need to be adjusted? Calculate Overall Materiality
using 5% of the appropriate base and calculate Tolerable
Misstatement by using 50% of the appropriate base.
- Inventory should be adjusted by $27,000
- Accounts Receivable should be adjusted by $5,000
- PPE should be adjusted by $2,000
- Both A and C are true
- None of the individual accounts need to be adjusted
the answer is a, but why some explanation would be great. thanks
Homework Answers
Add Answer to:
JJ is a public for profit company with net income before taxes
of $1,000,000 and total...
JJ is a retailer, public for profit company, with net income before taxes of $2,000,000 and...
JJ is a retailer, public for profit company, with net income before taxes of $2,000,000 and total assets of $5,000,000. During the year, Wayne CPA firm discovered multiple misstatements that aggregated to an overstatement of net income of $110,000. Calculate Overall Materiality using 5% of the appropriate base and calculate Tolerable Misstatement by using 50% of the appropriate base. Should JJ CPA firm request an overall adjustment and if so, by how much? Request an adjustment of $5,000 Request an...
($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative...
($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $1,536 $1,345 $1,224 $1,122 $1,047 $ 974 $ 798 1. 104 628 587 468 387 330 258 236 151 149 124 $ 216 $ 272 268 $ 238 $ 206 HAROUN COMPANY Comparative Balance Sheets December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $ 96 693 2,508...
Using the income statements and changes in balance sheet accounts provided for Firms A and B,...
Using the income statements and changes in balance sheet
accounts provided for Firms A and B, you will need to provide the
following information:
(c) Summary analysis of the statements of cash flows for Firms A
and B (see Exhibit 4.6 on page 181 of your textbook):
1. Total inflows for Firm A
2. Total outflows for Firm A
3. Total inflows for Firm B
4. Total outflows for Firm B
Income statement for year ended December 31,2015
Firm A...
Cloud 9 - Continuing Case W&S Partners has just won the January 31, 2023, audit for...
Cloud 9 - Continuing Case W&S Partners has just won the January 31, 2023, audit for Cloud 9. The audit team assigned to this client is: • Partner, Jo Wadley • Audit manager, Sharon Gallagher • Audit senior, Josh Thomas • IT audit manager, Mark Batten • Experienced staff, Suzie Pickering • First-year staff, Ian Harper As a part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure...
($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative...
($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $1,536 $1,345 $1,224 $1,122 $1,047 $ 974 $ 798 1,104 898 772 676 628 587 468 432 447 452 446419 387 330 329 258 236 174 151 149 124 $ 103 $ 189 $ 216 $ 272 $ 268 $ 238 $ 206 HAROUN COMPANY Comparative Balance Sheets December...
ABC Company is preparing its 2018 financial statements. Income from Continuing Operations (ICO) for 2018 was determined...
ABC Company is preparing its 2018 financial statements. Income from Continuing Operations (ICO) for 2018 was determined to be $1,800,000, but upon further review, ABC's accountant is not certain this number is accurate. ABC has a corporate tax rate of 30%. Additionally, the company reports one year of financial data on the face of the financial statements. Use the following information to determine the adjustments, if any, to correctly report Income From Continuing Operations. 1. During 2018, ABC experienced a labor...
Financial Statement worksheet (Journal Entries, T-Accounts, Adjusted Trial Balance, Income statement, Retained Earnings, Balance Sheet and...
Financial Statement worksheet (Journal Entries, T-Accounts,
Adjusted Trial Balance, Income statement, Retained Earnings,
Balance Sheet and following questions)
42.000 Financial Statement Homework #2 Name Gold Inc December 31, 2015 Unadjusted Trial balance Cash 44.000 Accounts Receivable 22.000 Allowance for Doubtful Accounts Short Term Note Receivable 50.000 Interest Receivable Supplies on Hand 5.000 Prepaid Insurance 48,000 Inventory 10.000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2015) Dividends 2,000 Sales...
36. June 30:Income taxes are to be computed at the rate of 25 percent of net...
36. June 30:Income taxes are to be computed at the rate of 25 percent of net income before taxes. [IMPORTANT NOTE: Since the income taxes are a percent of the net income you will want to prepare the Income Statements through the Net Income Before Tax line. The worksheet contains all of the accounts and their balances which you can then transfer to the appropriate financial statement.] Closing Entries 37. Close the revenue accounts. 38. Close the expense accounts. 39....
Everly Company Unadjusted Trial Balance December 31, 2018 106,000 28,000 7,500 30,000 110,000 15,000 80,000 Cash...
Everly Company Unadjusted Trial Balance December 31, 2018 106,000 28,000 7,500 30,000 110,000 15,000 80,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 46,000 8,000 17,900 12,500 50,000 46,000 47,600 5,000 465,500 12,000 45,000 2,000 48,000 10,000 143,000 14,000 3,000...
College Coasters is a San Diego–based merchandiser specializing in logo-adorned drink coasters. The company reported the...
College Coasters is a San Diego–based merchandiser specializing
in logo-adorned drink coasters. The company reported the following
balances in its unadjusted trial balance at December 1.
Cash
$
9,800
Accounts Receivable
1,900
Inventory
500
Prepaid Rent
540
Equipment
660
Accumulated Depreciation
110
Accounts Payable
1,380
Salaries and Wages Payable
300
Income Taxes Payable
0
Common Stock
6,400
Retained Earnings
2,600
Sales Revenue
14,180
Cost of Goods Sold
7,570
Rent Expense
990
Salaries and Wages Expense
1,600
Depreciation Expense
110
Income...
($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $1,536 $1,345 $1,224 $1,122 $1,047 $ 974 $ 798 1. 104 628 587 468 387 330 258 236 151 149 124 $ 216 $ 272 268 $ 238 $ 206 HAROUN COMPANY Comparative Balance Sheets December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $ 96 693 2,508...
Using the income statements and changes in balance sheet
accounts provided for Firms A and B, you will need to provide the
following information:
(c) Summary analysis of the statements of cash flows for Firms A
and B (see Exhibit 4.6 on page 181 of your textbook):
1. Total inflows for Firm A
2. Total outflows for Firm A
3. Total inflows for Firm B
4. Total outflows for Firm B
Income statement for year ended December 31,2015
Firm A...
Cloud 9 - Continuing Case W&S Partners has just won the January 31, 2023, audit for Cloud 9. The audit team assigned to this client is: • Partner, Jo Wadley • Audit manager, Sharon Gallagher • Audit senior, Josh Thomas • IT audit manager, Mark Batten • Experienced staff, Suzie Pickering • First-year staff, Ian Harper As a part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure...
($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2019-2013 2019 2018 2017 2016 2015 2014 2013 $1,536 $1,345 $1,224 $1,122 $1,047 $ 974 $ 798 1,104 898 772 676 628 587 468 432 447 452 446419 387 330 329 258 236 174 151 149 124 $ 103 $ 189 $ 216 $ 272 $ 268 $ 238 $ 206 HAROUN COMPANY Comparative Balance Sheets December...
Financial Statement worksheet (Journal Entries, T-Accounts,
Adjusted Trial Balance, Income statement, Retained Earnings,
Balance Sheet and following questions)
42.000 Financial Statement Homework #2 Name Gold Inc December 31, 2015 Unadjusted Trial balance Cash 44.000 Accounts Receivable 22.000 Allowance for Doubtful Accounts Short Term Note Receivable 50.000 Interest Receivable Supplies on Hand 5.000 Prepaid Insurance 48,000 Inventory 10.000 Vehicle 16,000 Equipment 75,000 Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2015) Dividends 2,000 Sales...
36. June 30:Income taxes are to be computed at the rate of 25 percent of net income before taxes. [IMPORTANT NOTE: Since the income taxes are a percent of the net income you will want to prepare the Income Statements through the Net Income Before Tax line. The worksheet contains all of the accounts and their balances which you can then transfer to the appropriate financial statement.] Closing Entries 37. Close the revenue accounts. 38. Close the expense accounts. 39....
Everly Company Unadjusted Trial Balance December 31, 2018 106,000 28,000 7,500 30,000 110,000 15,000 80,000 Cash Accounts Receivable Supplies Prepaid Insurance Inventory Vehicle Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Wages Payable Long-Term Notes Payable Common Stock Retained Earnings (1/1/2018) Dividends Service Revenue Repair Expense Delivery Expense Depreciation Expense Rent Expense Insurance Expense Wages Expense Supplies Expense Interest Expense Income Tax Expense Total 46,000 8,000 17,900 12,500 50,000 46,000 47,600 5,000 465,500 12,000 45,000 2,000 48,000 10,000 143,000 14,000 3,000...
College Coasters is a San Diego–based merchandiser specializing
in logo-adorned drink coasters. The company reported the following
balances in its unadjusted trial balance at December 1.
Cash
$
9,800
Accounts Receivable
1,900
Inventory
500
Prepaid Rent
540
Equipment
660
Accumulated Depreciation
110
Accounts Payable
1,380
Salaries and Wages Payable
300
Income Taxes Payable
0
Common Stock
6,400
Retained Earnings
2,600
Sales Revenue
14,180
Cost of Goods Sold
7,570
Rent Expense
990
Salaries and Wages Expense
1,600
Depreciation Expense
110
Income...
Most questions answered within 3 hours.
-
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 1 hour ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 3 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 2 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 2 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 3 hours ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 3 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 3 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 3 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 4 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 5 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 5 hours ago