chap 16
16 Pages

chap 16

Course: ACCT 2011, Spring 2013

School: University of Louisiana...

Word Count: 2573

Rating:

Document Preview

BE16-1 Your answer is correct. Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Cash Discount on Bonds Payable Bonds Payable BE16-2 Your...

Unformatted Document Excerpt
Coursehero >> Louisiana >> University of Louisiana at Monroe >> ACCT 2011

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

answer BE16-1 Your is correct. Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Cash Discount on Bonds Payable Bonds Payable BE16-2 Your answer is correct. Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2012, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit Bonds Payable 2000000 Common Stock 1000000 Paid-in Capital in Excess of Par 970000 Discount on Bonds Payable 30000 BE16-3 Your answer is correct. Pechstein Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is trading at $26 per share at the time of conversion. Record the conversion of the preferred stock. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit Preferred Stock 50000 Paid-in Capital in Excess of Par-Preferred 10000 Paid-in Cap. in Excess of Par-Comm. 40000 Stock Common Stock 20000 BE16-4 Your answer is correct. Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round computations and final answers to 0 decimal places, e.g. 12,510.) Description/Account Cash Discount on Bonds Payable Bonds Payable Paid-in Capital-Stock Warrants BE16-5 Your answer is correct. McIntyre Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit Cash 2020000 Discount on Bonds Payable 40000 Bonds Payable 2000000 Paid-in Capital - Stock Warrants 60000 BE16-6 Your answer is correct. On January 1, 2012, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Barwood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2012, and December 31, 2012 and 2013. (If no entry is required, enter No Entry as the description and 0 as the amount.) Date Description/Account Debit Credit 1/1/12 No Entry 0 No Entry 0 12/31/12 Compensation Expense 75000 Paid-in Capital - Stock Options 75000 12/31/13 Compensation Expense 75000 Paid-in Capital - Stock Options 75000 BE16-7 Your answer is correct. On January 1, 2012, Barwood Corporation granted 2,000 shares ($5 par value) of restricted stock to executives. The market price of the stock is $65 per share on the date of grant. The fair value of the stock at the grant date is $150,000. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2012, and December 31, 2012 and 2013. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Description/Account Debit Credit 1/1/12 Unearned Compensation 130000 Paid-in Capital in Excess of Par 120000 Common Stock 10000 12/31/12 Compensation Expense 65000 Unearned Compensation 65000 12/31/13 Compensation Expense 65000 Unearned Compensation 65000 BE16-8 Your answer is correct. On January 1, 2012 (the date of grant), Lutz Corporation issues 2,000 shares of restricted stock to its executives. The fair value of these shares is $75,000, and their par value is $10,000. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare the journal entry (if any) on January 1, 2012, and on December 31, 2012, assuming the service period is 3 years. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Description/Account Debit Credit 1/1/12 Unearned Compensation 75000 Paid-in Capital in Excess of Par 65000 Common Stock 10000 12/31/12 Compensation Expense 25000 Unearned Compensation 25000 BE16-9 Your answer is correct. Kalin Corporation had 2012 net income of $1,000,000. During 2012, Kalin paid a dividend of $2 per share on 100,000 shares of preferred stock. During 2012, Kalin had outstanding 250,000 shares of common stock. Compute Kalin's 2012 earnings per share. (Round answer to 2 decimal places, e.g. 5.15.) $ 3.20 per share BE16-10 Your answer is correct. Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2012. On May 1, 2012, Douglas issued 60,000 shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued on October 1. Compute Douglas's weighted average number of shares outstanding for 2012. 157500 shares BE16-11 Your answer is correct. Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2012. On May 1, Tomba issued 30,000 shares. (a) Compute the weighted average number of shares outstanding if the 30,000 shares were issued for cash. 320000 shares (b) Compute the weighted average number of shares outstanding if the 30,000 shares were issued in a stock dividend. 330000 shares BE16-12 Your answer is correct. Rockland Corporation earned net income of $300,000 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds, which are convertible into 16,000 shares of common. Rockland's tax rate is 40 percent. Compute Rockland's 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.13.) $3 BE16-13 Your answer is correct. DiCenta Corporation reported net income of $270,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta' tax rate is 40%. Compute DiCenta' 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 5.23.) $ 4.5 BE16-14 Your answer is correct. Bedard Corporation reported net income of $300,000 in 2012 and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common stock at $10 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round to 2 decimal places, e.g. 6.10.) $ 1.4 BE16-15 Your answer is correct. The 2012 income statement of Wasmeier Corporation showed net income of $480,000 and an extraordinary loss of $120,000. Wasmeier had 100,000 shares of common stock outstanding all year. Prepare Wasmeier's income statement presentation of earnings share. (Enter amounts to 2 decimal places, e.g. 5.25. For negative numbers use either a negative sign preceding the number, e.g. -45.10 or parenthesis, e.g. (45.10).) Earnings per share Income before extraordinary loss Extraordinary loss Net income BE16-16 Your answer is correct. Ferraro, Inc. established a stock appreciation rights (SAR) program on January 1, 2012, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the preestablished price of $20 on 5,000 SARs. The required service period is 2 years. The fair value of the SAR's are determined to be $4 on December 31, 2012, and $9 on December 31, 2013. Compute Perkins' compensation expense for 2012. $ 10000 Compute Perkins' compensation expense for 2013. $ 35000 E16-15 Your answer is correct. (Weighted Average Number of Shares) Gogean Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Gogean issued any potentially dilutive securities. Listed below is a summary of Gogean's common stock activities. 1. Number of common shares issued and outstanding at December 31, 2011 2. Shares issued as a result of a 10% stock dividend on September 30, 2012 3. Shares issued for cash on March 31, 2013 Number of shares common issued and outstanding at December31, 2013 4. A 2-for-1 stock split of Gogean's common stock took place on March 31, 2014 (a) Compute the weighted average number of common shares used in computin per common share for 2012 on the 2013 comparative income statement. 2640000 shares (b) Compute the weighted average number of common shares used in computin per common share for 2013 on the 2013 comparative income statement. 4140000 shares (c) Compute the weighted average number of common shares to be used in com earnings per common share for 2013 on the 2014 comparative income statem 8280000 shares (d) Compute the weighted average number of common shares to be used in com earnings per common share for 2014 on the 2014 comparative income statem 9280000 shares E16-22 (EPS with Convertible Bonds, Various Situations) In 2012 Buraka Enterprises issued, at par, 75 $1,000, 8% bonds, each convertible into 100 shares of common stock. Buraka had revenues of $17,500 and expenses other than interest and taxes of $8,400 for 2013. (Assume that the tax rate is 40%.) Throughout 2013, 2,000 shares of common stock were outstanding; none of the bonds was converted or redeemed. (Round answers to 2 decimal places, e.g. 5.25.) Your answer is correct. Compute diluted earnings per share for 2013. $ .57 Your answer is correct. Assume the same facts as those assumed for part (a), except that the 75 bonds were issued on September 1, 2013 (rather than in 2012), and none have been converted or redeemed. $ 1.21 Your answer is correct. Assume the same facts as assumed for part (a), except that 25 of the 75 bonds were actually converted on July 1, 2013. $ .57 E16-26 Your answer is correct. (EPS with Options, Various Situations) Zambrano Company's net income for 2012 is $40,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2011, each exercisable for one share at $8. None has been exercised, and 10,000 shares of common were outstanding during 2012. The average market price of Zambrano's stock during 2012 was $20. (Round final answers to 2 decimal places, e.g. 5.25.) (a) Compute diluted earnings per share. $ 3.77 (b) Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2012 (rather than in 2011). The average market price during the last 3 months of 2012 was $20. (Round the incremental share computation to the nearest whole share.) $ 3.94 E16-28 Your answer is correct. (EPS with Warrants) Werth Corporation earned $260,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 30,000 warrants that could each be exercised to purchase one share of common stock for $10 for each warrant exercised. (a) Are the warrants dilutive? Yes (b) Compute basic earnings per share. (Round to 2 decimal pla 5.25.) $ 2.60 (c) Compute diluted earnings per share. (Round to 2 decimal p 5.25.) $ 2.36 P16-1 (Entries for Various Dilutive Securities) The stockholders' equity section of Martino Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,000,000 shares, 300,000 shares issued and outstanding Paid in capital in excess of par - Common stock Retained earnings During the current year the following transactions occurred. 1. The company issued to the stockholders 100,000 rights. Ten rights are needed to buy one share of stock at $32. The rights were void after 30 days. The market price of the stock at this time was $34 per share. 2. The company sold to the public a $200,000, 10% bond issue at $104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $30 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. 3. All but 5,000 of the rights issued in (1) were exercised in 30 days. 4. At the end of the year, 80% of the warrants in (2) had been exercised, and the remaining were outstanding and in good standing. 5. During the current year, the company granted stock options for 10,000 shares of common stock to company executives. The company using a fair value option pricing model determines that each option is worth $10. The option price is $30. The options were to expire at year-end and were considered compensation for the current year. 6. All but 1,000 shares related to the stock option plan were exercised by year-end. The expiration resulted because one of the executives failed to fulfill an obligation related to the employment contract. Your answer is correct. Prepare general journal entries for the current year to record the transactions listed above. (If a memorandum entry is required instead of a journal entry, enter Memo entry as the Description and 0 as the amount. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round answers to 0 decimal places, e.g. 5,210.) Description/Account 1. Memo entry Memo entry 2. Cash Discount on bonds payable Bonds payable Paid-in capital - Stock warrants 3. Cash Paid-in capital in excess of par Common stock 4. Cash Paid-in capital - Stock warrants Paid-in capital in excess of par Common stock 5. Compensation expense Paid-in capital - Stock options 6. Cash Paid-in capital - Stock options Paid-in capital in excess of par Common stock (For options exercised.) Paid-in capital - Stock options Compensation expense (For options lapsed.) Your answer is correct. Prepare the stockholders' equity section of the balance sheet at the end of the current year. Assume that retained earnings at the end of the current year is $750,000. Stockholders' Equity: Paid-in Capital: Common stock, $10 par value, authorized 1,000,000 shares, 320,100 shares issued and outstanding Paid in capital in excess of par - Common stock Paid-in capitalStock warrants Retained earnings Total stockholders' equity P16-7 (Computation of Basic and Diluted EPS) Charles Austin of the controller's office of Thompson Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2013. Austin has compiled the information listed below. 1. The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of December 31, 2012, 2,000,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as follows. July 1, 2012 January 1, 2013 April 1, 2013 July 1, 2013 August 1, 2013 November 1, 2013 December 31, 2013 3. A total of 700,000 shares of an authorized 1,200,000 shares of convertible preferred stock had been issued on July 1, 2012. The stock was issued at its par value of $25, and it has a cumulative dividend of $3 per share. The stock is convertible into common stock at the rate of one share of convertible preferred for one share of common. The rate of conversion is to be automatically adjusted for stock splits and stock dividends. Dividends are paid quarterly on September 30, December 31, March 31, and June 30. 4. Thompson Corporation is subject to a 40% income tax rate. 5. The after-tax net income for the year ended December 31, 2013 was $11,550,000. The following specific activities took place during 2013. 1. January 1A 5% common stock dividend was issued. The dividend had been declared on December 1, 2012, to all stockholders of record on December 29, 2012. 2. April 1A total of 400,000 shares of the $3 convertible preferred stock was converted into common stock. The company issued new common stock and retired the preferred stock. This was the only conversion of the preferred stock during 2013. 3. July 1A 2-for-1 split of the common stock became effective on this date. The board of directors had authorized the split on June 1. 4. August 1A total of 300,000 shares of common stock were issued to acquire a factory building. 5. November 1A total of 24,000 shares of common stock were purchased on the open market at $9 per share. These shares were to be held as treasury stock and were still in the treasury as of December 31, 2013. 6. Common stock cash dividendsCash dividends to common stockholders were declared and paid as follows. April 15$0.30 per share October 15$0.20 per share 7. Preferred stock cash dividendsCash dividends to preferred stockholders were declared and paid as scheduled. Your answer is correct. Determine the number of shares used to compute basic earnings per share for the year ended December 31, 2013. 4951000 shares Your answer is correct. Determine the number of shares used to compute diluted earnings per share for the year ended December 31, 2013. 5791000 shares Your answer is correct. Compute the adjusted net income to be used as the numerator in the basic earnings per share calculation for the year ended December 31, 2013. $ 10350000

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

University of Sarajevo - ECON - 112
 energiju Svrha bioluminiscencije  signalizacija upozorenje mamacU noćne ; sumračne životinje ubrajamo : ­ Moska kornjača; ­ Galaj; ­ Šišmiš; ­ Mačke.Sunce direktno utječe
Ashford University - ENG 122 - ENG 122
Grading SummaryThesearetheautomaticallycomputedresultsofyourexam. DateTaken:Gradesforessayquestions,andcommentsfromyour TimeSpent:instructor,areinthe"Details"sectionbelow.PointsReceived:QuestionType:#OfQuestions:2/4/201326min,40secs18/20(90%)#C
University of Louisiana at Monroe - ACCT - 2011
BE17-1Your answer is correct.Garfield Company purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bondsof Chester Corporation for $74,086, which provides an 11% return. Prepare Garfield's journalentries for (a) the purchase of the i
Ashford University - ENG 122 - ENG 122
Grading SummaryThesearetheautomaticallycomputedresultsofyourexam. DateTaken:Gradesforessayquestions,andcommentsfromyour TimeSpent:instructor,areinthe"Details"sectionbelow.PointsReceived:QuestionType:#OfQuestions:2/11/201329min,59secs12/20(60%)#
University of Louisiana at Monroe - ACCT - 2011
BE19-1Your answer is correct.In 2012, Amirante Corporationhad pretax financial income of$168,000 and taxable income of$120,000. The difference is dueto the use of differentdepreciation methods for taxand accounting purposes. Theeffective tax rate
University of Louisiana at Monroe - ACCT - 2011
BE21-1Your answer is correct.Callaway Golf Co. leasestelecommunication equipment.Assume the following data forequipment leased from PhotonCompany. The lease term is 5years and requires equal rentalpayments of $31,000 at thebeginning of each year.
University of Louisiana at Monroe - ACCT - 2011
BE23-1Your answer is correct.Wainwright Corporation had thefollowing activities in 2012.1. Sale of land $180,0002. Purchase of inventory$845,0003. Purchase of treasurystock $72,0004. Purchase of equipment$415,0005. Issuance of commonstock $320
University of Louisiana at Monroe - ACCT - 2011
Eddi HernandezWarren Sports SupplyAccounts Payable Trial Balance31-Dec-13VENDOR NO.VENDOR NAMEAMOUNT PAYABLE253Chicago Office Supply$5,117.15261Gillett ConsultingTOTAL3,650$8,767.15
University of Louisiana at Monroe - ACCT - 2011
Eddi hernandezWarren Sporting GoodsAcount Receivable Aged Trial Balance31-Dec-13CustomerNumber407408410AmountCustomerClayborneUniversityBranchCollegeEasternWisconsinUniversityTotalsDue$14,040Age in daysCurrent31-60Over 90$14,0401
University of Louisiana at Monroe - ACCT - 2011
8/20/2012ACCOUNTING INFORMATION SYSTEMSACCT 3008 FALL 2012Week of8/20TopicIntroduction/OverviewAccountant's Perspective of Information SystemReading*AssignmentsChapter 1*Forum 1 Due:Post - 5pm 8/26Response - 12pm 8/288/27Intro to Transactio
University of Louisiana at Monroe - ACCT - 2011
Eddi HernandezWaren Sports SupplyBank ReconciliationDecember, 2013BankStatementUnadjusted balance, 12-31-13$123,414.03GeneralLedger$111,767.97Add:Deposits in transit12/24/1312/24/1312/26/1312/30/1312/31/1312/31/13Amount$9,000.009,165.
University of Louisiana at Monroe - ACCT - 2011
Eddi HernandezWARREN SPORTS SUPPLYSTATEMENT OF CASH FLOWSAT DECEMBER 31, 2013CASH FLOWS FROM OPERATING ACTIVITIESNet incomeAdjustments to reconcile net incometo net cash from operating activities:DepreciationGain on sale of fixed assetsGain on s
University of Louisiana at Monroe - ACCT - 2011
WAREN SPORTS SUPPLYDECEMBER 31, 2009YEAR-END WORKSHEETACCT.NO.ACCOUNT TITLE10100102001030010400105001060010700108001090011000CashAccounts receivableAllowance for doubtful accountsInventoryPrepaid ExpensesMarketable securitiesInterest
University of Louisiana at Monroe - ACCT - 2011
ULM COLLEGE OF BUSINESSAISFall 2012ACCOUNTING INFORMATION SYSTEMSACCT 3008Fall 2012I.Contact InformationInstructor: Katherine Boswell, Ph.D., CIAPhone: (318) 342-1114Fax: (318) 342-1191E-mail: boswell@ulm.eduOffice: Hemphill 344Office Hours:
University of Louisiana at Monroe - ACCT - 2011
1. I would consider what Tina Morales did as theft because during her last week at Careys shemade copies of the inventory control system. The system was not exactly the same as Tina hadcreated it when she first presented it to Careys CEO. The inventory
University of Louisiana at Monroe - ACCT - 2011
Eddi HernandezWaren Sports SupplyFixed Assets Trial BalanceDecember 31, 2013ASSETOffice FurnitureCOSTACCUM. DEPREC.NET BOOK VALUE$50,750.00$50,750.0069,255.0034,627.5034,627.50200,660.0030,099.00170,561.00High-Speed Copier7,367.00736.70
University of Louisiana at Monroe - ACCT - 2011
Eddi HernandezWARREN SPORTS SUPPLYSTATEMENT OF INCOME AND RETAINED EARNINGSFOR THE YAER ENDED DECEMBER 31, 2013REVENUESalesLess: Sales returns and allowancesSales discounts takenNet sales$1,598,666.0061,111.0015,627.421,521,927.58COST OF GOOD
University of Louisiana at Monroe - ACCT - 2011
Eddi HernandezWAREN SPORTS SUPPLYUNADJUSTED TRIAL BALANCEDecember 31, 2013Acct. No.10100102001021010300104001050010600107001080011000201002030020400205002060020800210002110026000290002901031000302003030030500306003070030800
University of Louisiana at Monroe - ACCT - 2011
ULM College of Business AdministrationSpring 2013AUDITINGACCT 4020Spring 2013I. Contact InformationInstructor: Katherine Boswell, Ph.D., CIAPhone: (318) 342-1114Fax: (318) 342-1191E-mail: boswell@ulm.eduOffice: Hemphill 344Office Hours: T: 11:0
University of Louisiana at Monroe - ACCT - 2011
P1: PjUACPA202-p271-300ACPA202-Vol-I-PS.clsJuly 16, 201116:37167Consideration of Fraud in a Financial Statement AuditAU Section 316Consideration of Fraud in a FinancialStatement Audit(Supersedes SAS No. 82.)Source: SAS No. 99; SAS No. 113.Effe
University of Louisiana at Monroe - ACCT - 2011
Last Date Modified1/17/2013AUDITINGACCT 4020 SPRING 2013Tuesday/ThursdayTopicReading* (due BEFORE class)Assignments *1/151/17Syllabus/Introduction/Administrative/AuditingOverviewAuditing OverviewChapter 1Integrated Audit Practice CaseAssign
University of Louisiana at Monroe - ACCT - 2011
AuditingIntroductionRittenburg,etal(2011).Auditing:ABusinessRiskApproach.SouthWestern/CengageLearningPublishersWhatdoestheAuditFunctiondo?Performstestsonrecords/controlsInterpretauthoritativepronouncements(FASB,IASB,GASB,etc.)toensurefinancialstate
University of Louisiana at Monroe - ACCT - 2011
Auditing the Revenue CycleConcepts ReviewAuditRisk FormulaManagement AssertionsRisk assessed by assertionRevenue cycle assertionsRevenueTo recognize revenue, it must be BOTHA. Realized or realizableB. Earned Realized(SEC definition)Persuasive
University of Louisiana at Monroe - ACCT - 2011
WP 1.CBILTRITE BICYCLES, INC.Interbank Transfer ScheduleDecember 31, 2007CheckNo.FromTo-126882Bank TwoDollar Bank-PayrollPrepared by:Date:Reviewed by:Date:Date of disbursementDate of receiptAmountBooksBankBooksBankComments- - - - -
University of Louisiana at Monroe - ACCT - 2011
Chapter 15Completingthe AuditCopyright 2010 South-Western/Cengage LearningAudit Opinion Formulation ProcessSubsequenteventsAConsiderations in Completing the AuditRoll-forward workRevenue and expense accountsAttorney lettersManage
University of Louisiana at Monroe - ACCT - 2011
1666 K Street, NWWashington, D.C. 20006Telephone: (202) 207-9100Facsimile: (202) 862-8430www.pcaobus.orgCONCEPT RELEASE ON POSSIBLEREVISIONS TO PCAOB STANDARDSRELATED TO REPORTS ON AUDITEDFINANCIAL STATEMENTSAND RELATED AMENDMENTS TO PCAOBSTANDA
University of Louisiana at Monroe - ACCT - 2011
Control Objectives, Assertions and Procedures Activitya.Sales recorded, goods not shippedb.Goods shipped, sales not recordedc.Goods shipped to a bad credit risk customerd.Sales billed at the wrong price or wrong quantitye.Product line A sales re
University of Louisiana at Monroe - ACCT - 2011
Control Objectives, Assertions and Procedures Activitya.Sales recorded, goods not shippedb.Goods shipped, sales not recordedc.Goods shipped to a bad credit risk customerd.Sales billed at the wrong price or wrong quantitye.Product line A sales re
University of Louisiana at Monroe - ACCT - 2011
Internal Control over Financial Reporting Guidance for Smaller Public CompaniesFrequently Asked QuestionsInternal Control over Financial Reporting Guidance for Smaller Public CompaniesFrequently Asked QuestionsJune 20061. Need for Internal Controls
University of Louisiana at Monroe - ACCT - 2011
WP 6.4Prepared by:Date:Reviewed by:Date:BILTRITE BICYCLES, INC.Inventory CutoffDecember 31, 2007PURCHASES CUTOFF- - -DATERECORDEDVOUCHER NO.12/31/200712/31/20071/2/20081/3/20081/3/20081/4/2008124561245712458124591246012461(1)(2)R
University of Louisiana at Monroe - ACCT - 2011
Evidence and AttributeSamplingChapters 7 and 8AuditingRittenberg, Johnstone, GramlingGATHERING EVIDENCE (Ch 7)Commonly Used Audit ProceduresAuditors use a variety of procedures to gatherevidenceFor certain accounts or management assertions,certa
University of Louisiana at Monroe - ACCT - 2011
FraudRittenburg,etal(2012).Auditing:ABusinessRiskApproach,8thed.,SouthWestern/CengageLearningPublishersFraud&AuditorResponsibilitiesThemissionofthePCAOBistorestoretheconfidenceofinvestors,andsocietygenerally,intheindependentauditorsofcompanies.The
University of Louisiana at Monroe - ACCT - 2011
GovernanceRittenburg, et al (2011). Auditing: A Business Risk Approach. South-Western /Cengage Learning PublishersCorporate GovernanceA process by which theowners and creditors of anorganization exert control andrequire accountability for theresou
University of Louisiana at Monroe - ACCT - 2011
ASSERTIONS AND RELATED INTERNAL CONTROLSSales-Receivables-Cash CycleRevenue TransactionsExistence/OccurrenceRights/ObligationsCompletenessValuation/AllocationPresentation/Disclosure Segregation of duties Sales recorded only w/ approved customer o
University of Louisiana at Monroe - ACCT - 2011
InternalControloverFinancialReportingRittenburg,etal(2011).Auditing:ABusinessRiskApproach.SouthWestern/CengageLearningPublishersIntegratedAuditsTheauditrequirementsforpubliccompanieschangedwiththeenactmentoftheSarbanesOxleyActof2002,whichrequiredt
University of Louisiana at Monroe - ACCT - 2011
Internal Control Testing PopulationInv.#12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849502359236023612362236323642365236623672368236923702371237223
University of Louisiana at Monroe - ACCT - 2011
KPMG LLP2001 M Street, NWWashington, DC 20036Independent Auditors Report on Internal Control over Financial ReportingInspector GeneralU.S. Department of JusticeUnited States Attorney GeneralU.S. Department of JusticeWe have audited the consolidate
University of Louisiana at Monroe - ACCT - 2011
INTERNAL CONTROL MATRIX FORAUDIT OF IT GENERAL SYSTEMS CONTROLSVersion No. 4.2Control Objectives1. INDEPENDENT MANAGEMENTREVIEWSManagement should perform periodicindependent reviews (includinginternal and external audits) of IToperations to ensur
University of Louisiana at Monroe - ACCT - 2011
Long Term Assets andRelated ExpensesAuditingRisks Associated withLong-termAssetsChange useful life and/or residual valueCapitalize repairs/maintenance/etc. thatshould be expensedImproperly accounting for assetrestructuring or acquisitionsFailing
University of Louisiana at Monroe - ACCT - 2011
1666 K Street, NW Washington, D.C. 20006 Telephone: (202) 207-9100 Facsimile: (202) 862-8430 www.pcaobus.orgSTAFF VIEWSAN AUDIT OF INTERNAL CONTROL OVER FINANCIAL REPORTING THAT IS INTEGRATED WITH AN AUDIT OF FINANCIAL STATEMENTS: GUIDANCE FOR AUDITORS
University of Louisiana at Monroe - ACCT - 2011
PPSInstStatistical Sampling Probability Proportional to Size Sampling (PPS)1.Determine the acceptable risk of incorrect acceptance, , using the audit risk model. The risk ofincorrect rejection () is not directly controlled under PPS.2.Determine samp
University of Louisiana at Monroe - ACCT - 2011
PPSData`Acct # Book Value1 $7,5892 $17,0233 $1,5144 $9,5025 $7,7906 $2,6257 $7,8698 $3,3339 $15,68010 $1,53011 $16,85712 $78313 $11,51514 $7,45115 $15,23516 $5,74217 $5,10918 $13,91019 $14,22320 $15,91921 $13,05222 $1,23923 $8,531
University of Louisiana at Monroe - ACCT - 2011
Reports on AuditedFinancial StatementsCompilation from Auditing: A Business Risk Approach, 7e by Rittenberg et al.and Auditing and Assurance Services 4e by Louwers, et al.Reports Accompanying FinancialStatements Preparedby Auditor Opinion on finan
University of Louisiana at Monroe - ACCT - 2011
e71cf81bd188afbbe591b238f6e65b1d59a6d31f.docAUDIT OPINIONS ANDMODIFICATIONS TO THE STANDARD AUDIT REPORT#OpinOpen1Based on Other Auditor-Full ResponUnqNoScopNo2Based on Other Auditor-Shared ResponUnqYesYesYesNo3Going ConcernUnqNoNo
University of Louisiana at Monroe - ACCT - 2011
RiskManagementRittenburg,etal(2011).Auditing:ABusinessRiskApproach.SouthWestern/CengageLearningPublishersCriticalComponentsofRiskBusinessriskriskthataffectstheoperationsandpotentialoutcomesoforganizationalactivitiesFinancialreportingriskriskthatre
University of Louisiana at Monroe - ACCT - 2011
Additional Help:File Name:New Reference:Effective date:594594saa_012204_cd3401/22/200401/01/2004U.S. AGENCY FORINTERNATIONALDEVELOPMENTSample Management Representation Letter for Financial Audits[Name]Assistant Inspector General for AuditOff
University of Louisiana at Monroe - ACCT - 2011
Example of a Management Representation LetterThe following letter is not intended to be a standard letter. Representations by management will vary from one entityto another and from one period to the next.Although seeking representations from managemen
University of Louisiana at Monroe - ACCT - 2011
5318ce6e18b5e9d7a9f7332cf027ae82b150736f.docASSERTIONS AND RELATED SUBSTANTIVE TESTSSales-Receivables-Cash CycleSales and ReceivablesExistence/OccurrenceRights/ObligationsCompletenessValuation/AllocationPresentation/Disclosure Confirm A/R (GAAS,
University of Louisiana at Monroe - ACCT - 2011
TheAuditofCashandLiquidAssetsChapter12AuditingCashWhyinherentlyrisky?Highlyliquid Transportable Noteasilyidentifiable Pervasivethroughallcycles63CashCollections:TypicalActivitiesReceivecashandREMITTANCEADVICEinmail.PrepareCASHPRELIST.Enterto
University of Louisiana at Monroe - ACCT - 2011
8f0aba3ccf7727af3dffa9b4411033a67416a468.docINTERNAL CONTROL: TYPICAL FUNCTIONS, RESPONSIBILITIES, AND CONTROLSTypical Organizational Chart (Letter in parenthesis indicates Authorization, Recording, or Custody function)SalesOrder Dept (A)TreasurerMa
University of Louisiana at Monroe - ACCT - 2011
Introduction toOperationsManagementMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1.2.3.4.5.6.7.8.Define the term operations managementIdentify the three major functional areas
University of Louisiana at Monroe - ACCT - 2011
Competitiveness,Strategy, andProductivityMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1. List the three primary ways that business organizations compete2. Explain five reasons for the
University of Louisiana at Monroe - ACCT - 2011
ForecastingMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1. List the elements of a good forecast2. Outline the steps in the forecasting process3. Describe at least three qualitative for
University of Louisiana at Monroe - ACCT - 2011
Strategic CapacityPlanning for Productsand ServicesMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.You should be able to:1.2.3.4.5.Summarize the importance of capacity planningDiscuss ways of defining and
University of Louisiana at Monroe - ACCT - 2011
Process Selectionand Facility LayoutMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1.2.3.4.5.6.7.8.Explain the strategic importance of process selectionDescribe the influence tha
University of Louisiana at Monroe - ACCT - 2011
Location Planning andAnalysisMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1.2.3.4.5.6.Identify some of the main reasons organizations need to makelocation decisionsExplain why l
University of Louisiana at Monroe - ACCT - 2011
Management of QualityMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:Define the term quality as it relates to products and as it relates toservices2. Explain why quality is important and
University of Louisiana at Monroe - ACCT - 2011
Inventory ManagementMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:Define the term inventory, list the major reasons for holding inventories, andlist the main requirements for effective i
University of Louisiana at Monroe - ACCT - 2011
Lean OperationsMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1. Explain what is meant by the term lean operations system2. List each of the goals of a lean system and explain its importa
University of Louisiana at Monroe - ACCT - 2011
Quality ControlMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1.2.3.4.5.List and briefly explain the elements in the control processExplain how control charts are used to monitor a p
University of Louisiana at Monroe - ACCT - 2011
Project ManagementMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. You should be able to:1. Discuss the behavioral aspects of projects in terms of project personneland the project manager2. Explain the nature a