L19 Notes_Part_17 - (2) To adjust inventory to reflect...

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Chapter 15 – P8: Audit Adjustments 8. Consider the following summary of unadjusted audit differences for Avni Co., an importer of fine wines with total assets of $1.5 million. a. Which items do you think management will accept without much argument? Why? b. Which items do you think management will be less willing to accept? Why? c. What strategies might you employ to convince management to make the changes?
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Chapter 15 – P8: Audit Adjustments Description Total Assets Liability Revenue Expense (1) To accrue additional pension expense $84,500 ($84,500) $84,500
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Unformatted text preview: (2) To adjust inventory to reflect late-arriving goods shipped FOB shipping point 47,200 $47,200 (47,200) (3) To adjust prepaid assets to reflect expiration of private club dues 700 ( 700) 700 (4) To adjust revenue, cost of goods sold, inventory and accounts receivable to reflect proper sales cutoff 20,000 (49,990) 20,000 $49,990 (20,000) (5) To post unrecognized trade payables 18,045 _______ (18,045) _______ 18,045 Totals ($16,510) ($102,545) $49,990 $36,045 Avni Co. Summary of Unadjusted Audit Differences 12-31-07 Effect on Accounts: Debit (Credit)...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L19 Notes_Part_17 - (2) To adjust inventory to reflect...

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