A) Commercial Substance
Gain on Disposal of Vehicles
B) No Commercial Substance
A) Less than 16 days: (300,000x.02)
Between 16 & 30 days (100,000x.10)
Between 31 & 45 days (80,000x.15)
Between 46 & 60 days (40,000x.20)
Between 61 & 75 days (20,000x.55)
Total = $45,000
B) Accounts Receiv
Balance per bank statement, Sept. 30(interest removed).
Add: Deposits in transit.
Deduct: Outstanding checks.
Correct cash balance, July 31.
Balance per books, July 31 (9 dollars removed for er
Statement of Cash Flows
For the Year Ended December 31, 2010
Cash Flows from operating activities:
Adjustments to reconcile net income to net cash
Provided by operating activities:
Statement of Owners Equity
Homework #2 - Chapter #3
Prof. Ernest Gary
28. During the year, Tamara had capital transactions resulting in gain (losses) as follows:
Sold stock in ABC Company (acquire two years ago)
Sold collectible coins (held for mor
ACC 442/Prof. Gary Ernest
Homework Chapter 14
11. Simon owns stock that has declined in value since acquired. He has decided either to give the stock to his nephew, Fred, or to s
proceeds. If Fred receives the stock, he will sell it to obtain the proceeds
Chapter # 4
a. Gross Income = $2,000 - $300 = $1,700
b. No Gross Income
c. Gross Income = $200 x 2 = $400
a. Cash Basis = $280,000 + $12,000 = $292,000.
b. Accrual basis = $280,000 + $12,000 - $40,000 + $60,000 =
*Prepayments are always includ
Chapter # 5
Homework # 3
31. What is the taxpayers gross income in each of the following situations?
a. Darrin received a salary of $50,000 in 2015 from his employer, Green Construction.
Darrins gross income is $50,000.
b. In July 2014, Green gave Darrin
ACC 442 / FALL 2016
Prof. Gary Ernest
Homework - Chapter #15
18. Logan and Johnathan exchange land, and the exchange qualifies as like kind under 1031. Because
Logans land (adjusted basis of $85,000) is worth $100,000 and Johnathans land has a fair market
PINNACLE MANUFACTURING PART V
1.Segregation of the purchasing,
receiving, and cash disbursements
2.Use of prenumbered voucher
packages, properly accounted for.
3.Use of prenumbered checks, properly
4.Use of pre
A & M SANDLER INC
A A HILL CORP
A TO Z
ADVENT SIGN MFG. CO.
AFFILIATED MATERIAL INC
AIR ENERGY INC
AIR PRODS & CHEMS-ACCTS PAYBL
ALBERS APPLIANCE INC.
PINNACLE MANUFACTURING AUDIT - PART IV
CONTROL RISK MATRIX - ACQUISITIONS
RELATED AUDIT acquisitions
OBJECTIVES are f
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions-Acquisitions.
Define the Objective(s):
Define the population precisely (including stratification, if any):
Define the sampling unit, organization of populati
PINNACLE MANUFACTURING - Part IV
Control Risk Matrix Acquisitions
are for goods
Pinnacle Manufacturing Financial Statements
Pinnacle Manufacturing Company
For the Year ended December 31
Cost of goods sold
Income from operations
Other revenues and gains
For each of the above transactions, specify whether the item in question should be included in ending
inventory, and if so, at what amount.
A) YES this item should be included in ending inventory at $800 - FOB Destination and the