How do items discussed in the critical audit matters section differ from items in an unqualified opinion
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How do items discussed in the critical audit matters section differ from items in an unqualified opinion with an emphasis-of-matter paragraph?
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Question 1: (20) A. On November 1, 2019. James Andersun organized Continental Moving Company. The Iransactions occurring during the first month of operations were as follows. Nov, 1 James deposited 5700.000 cash in a bank account in the name of the business. Nov. 2 Purchased land for S190.000 and building for $350,0MMI, paying S130.000 cash and signing a note payable for the rest to Secure Mortgage Compuny bearing interest rate at Nav. 2 Paid $12(N0 to Morrison Realty as four months" advance rent on the parking lot Nov. 3 Purchased five trucks from Willis Motors at a total cost of S600,000. A cash down payment of $300,(H0 was made and a note payable was issaed for the balance of the purchase price. (This note payable is due in 60 days and does not call for the payment of interest.) Nov. 6 Purchased office equipment for cash, S30.000. Nov, 6 Purchased office supplies on account fram Newport Office Company, S1,8S0. Payment due in 30 days. (These supplies are expected to last for several months.) Nov, 6 Moved furniture of Mr. and Mrs. Jumes from New York to Los Angeles for S9.250. Collected $3,250 in cash, balance to be paid within 30 daya Moved furniture for various clients for S40, SOX), Collected Ss20,5I) in cash, halance to he paid within 30 days Nov. 9 Nov, 10 Received S15.000 cash as advance payment on moving furniture from Lara Construction Company. Nov. 15 Paid salaries to employees for the first half of the month, S18.600. Nav, 25 Moved furniture for various clients for $30.000. Cash collected in full. Nov. 30 Salaries paid for the second half of November amounted to S15,000. Nov. 30 Received a gasoline bill for the month of November frum Albert Oil Company in the amount of SI8.000, to be paid by December 10, Nov. 30 Paid $8,000 to Secure Mortgage Company. This S8,000 payment included se interest expense for November and a 53,000 reduction in the balance of the not issued on November 2. Nov. 30 Anderson withdrew $5,000 cash finom the business for his personal use. Other Data: Other Data: a. Estimated useful life of the building is 20 years, trucks 4 years, and office equipment 10 years. b. During November, the company earned $3,500 of moving furniture dues paid in advance by Lara Construction Company on November 10. c. Office supplies on hand at November 30 are estimated as $1,800. d. The advance payment of rent on November 2 covered a period of four months. Required: Prepare journal entries. ii. Post to ledger accounts. iii. i. Prepare a trial balance at November 30. Prepare adjusting entries and post to ledger accounts. Prepare an adjusted trial balance at November 30. Prepare an income statement and balance sheet. Prepare closing entries at November 30 and post to ledger accounts. Prepare an after-closing trial balance at November 30. iv. V. vi. vii. viii. Question 1: (20) A. On November 1, 2019. James Andersun organized Continental Moving Company. The Iransactions occurring during the first month of operations were as follows. Nov, 1 James deposited 5700.000 cash in a bank account in the name of the business. Nov. 2 Purchased land for S190.000 and building for $350,0MMI, paying S130.000 cash and signing a note payable for the rest to Secure Mortgage Compuny bearing interest rate at Nav. 2 Paid $12(N0 to Morrison Realty as four months" advance rent on the parking lot Nov. 3 Purchased five trucks from Willis Motors at a total cost of S600,000. A cash down payment of $300,(H0 was made and a note payable was issaed for the balance of the purchase price. (This note payable is due in 60 days and does not call for the payment of interest.) Nov. 6 Purchased office equipment for cash, S30.000. Nov, 6 Purchased office supplies on account fram Newport Office Company, S1,8S0. Payment due in 30 days. (These supplies are expected to last for several months.) Nov, 6 Moved furniture of Mr. and Mrs. Jumes from New York to Los Angeles for S9.250. Collected $3,250 in cash, balance to be paid within 30 daya Moved furniture for various clients for S40, SOX), Collected Ss20,5I) in cash, halance to he paid within 30 days Nov. 9 Nov, 10 Received S15.000 cash as advance payment on moving furniture from Lara Construction Company. Nov. 15 Paid salaries to employees for the first half of the month, S18.600. Nav, 25 Moved furniture for various clients for $30.000. Cash collected in full. Nov. 30 Salaries paid for the second half of November amounted to S15,000. Nov. 30 Received a gasoline bill for the month of November frum Albert Oil Company in the amount of SI8.000, to be paid by December 10, Nov. 30 Paid $8,000 to Secure Mortgage Company. This S8,000 payment included se interest expense for November and a 53,000 reduction in the balance of the not issued on November 2. Nov. 30 Anderson withdrew $5,000 cash finom the business for his personal use. Other Data: Other Data: a. Estimated useful life of the building is 20 years, trucks 4 years, and office equipment 10 years. b. During November, the company earned $3,500 of moving furniture dues paid in advance by Lara Construction Company on November 10. c. Office supplies on hand at November 30 are estimated as $1,800. d. The advance payment of rent on November 2 covered a period of four months. Required: Prepare journal entries. ii. Post to ledger accounts. iii. i. Prepare a trial balance at November 30. Prepare adjusting entries and post to ledger accounts. Prepare an adjusted trial balance at November 30. Prepare an income statement and balance sheet. Prepare closing entries at November 30 and post to ledger accounts. Prepare an after-closing trial balance at November 30. iv. V. vi. vii. viii.
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Answer rating: 100% (QA)
Answer Explanation The auditors report contains either an expression of opinion on the financial statements taken as a wholeor an assertion that an opinion cannot be expressed This standard discusses ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Posted Date:
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