Writing Assignment

Writing Assignment - To Maurice and the Board of Directors of Hospitality Monthly From Austin Varner RE Cash dividend for 2008 Please read

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To: Maurice and the Board of Directors of Hospitality Monthly From: Austin Varner RE: Cash dividend for 2008 Please read carefully. After examining the financial figures for 2008, it is not advised that Hospitality Monthly declare a cash dividend of $62,500. This is due to the fact that the following transactions were overlooked: a. Although the balance of the Printing Supplies account is $40,000, only $17,500 in supplies is on hand at the end of the year. b. Depreciation of $25,000 on equipment has not been recorded. c. Wages of $11,750 have been earned by Turner’s employees but not recognized in the accounts. d. No provision has been made for estimated income taxes payable of $13,500. e. A liability account called Unearned Subscription has a balance of $20,250, although it has been determined that one-third of these subscriptions have been mailed to subscribers. After inputting these transactions into the financial statements the following revisions were made: 1) Revenues were increased by $6,750, from $432,500 to $439,250. 2) Expenses were increased by $59,250, from $352,500 to $411,750.
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This note was uploaded on 03/10/2008 for the course ACC 207 taught by Professor Abo-hebeish during the Fall '08 term at Cal Poly Pomona.

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Writing Assignment - To Maurice and the Board of Directors of Hospitality Monthly From Austin Varner RE Cash dividend for 2008 Please read

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