You have been engaged to audit the accounts of EFU CORP. for the first time in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have been engaged to audit the accounts of EFU CORP. for the first time in 2004. During the audit you found the following: Year ending December 31 2002 2003 2004 Omissions from the books: Accrued expenses, Dec. 31 Accrued income, Dec. 31 P18,000 3,600 P27,000 4,050 P9,000 3,150 а. b. Prepaid expenses, Dec. 31 Unearned income. Dec. 31 108,000 31,500 81,000 22,500 54,000 13,500 с. d. For each number indicate the effect by writing O for overstated, U for understated or X for no effect. b. REQUIREMENTS: а. Indicate the amount of over or under statement. EFFECT AMOUNT 1. On 2004 net income of the omission of both accrued expense and unearned income at the end of 2002, 2003 and 2004 when considered together. 2. On Retained Earnings after closing at Dec. 31, 2004 of the omission unearned income at the end of 2002, 2003 and 2004. 3. On working capital at December 31, 2004 of the omission of accrued income at the end of 2002, 2003 and 2004 when considered together. 4. On working capital at Dec. 31, 2004 of the omission of unearned income at the end of 2002, 2003 and 2004. 5. On Retained Earnings after closing at Dec. 31, 2004 of the omission of accrued expenses at the end of 2002, 2003 and 2004. 6. On working capital at Dec. 31, 2004 of the omission of prepaid expenses at the end of 2003 7. On Retained Earnings after closing at Dec. 31, 2004 on the omission of prepaid expenses at the end of 2002 and 2003. 8. On 2003 net income of the omission of accrued expenses at the and 2004. end of 2002. 9. On 2004 net income of the omission of accrued income at the end of 2002, 2003 and 2004 when considered together. 10. On the 2003 net income of the omission of both accrued income and prepaid expense at the end of 2002 and 2003. 11. On the 2004 net income of the omission of prepaid expenses at the end of 2003 and 2004. 12. On 2004 net income of the omission unearned income at the end of 2002 and 2003. 13. On Retained Earnings before closing at Dec. 31, 2002 of the omission of accrued income at the end of 2002. 14. On the 2004 net income of the omission of accrued expenses at the end of 2002, 2003 and 2004 when considered together. 15. On Retained Earnings after closing at Dec. 31, 2004 of the omission of both accrued expenses and unearned income at the end 2002, 2003 and 2004 when considered together. You have been engaged to audit the accounts of EFU CORP. for the first time in 2004. During the audit you found the following: Year ending December 31 2002 2003 2004 Omissions from the books: Accrued expenses, Dec. 31 Accrued income, Dec. 31 P18,000 3,600 P27,000 4,050 P9,000 3,150 а. b. Prepaid expenses, Dec. 31 Unearned income. Dec. 31 108,000 31,500 81,000 22,500 54,000 13,500 с. d. For each number indicate the effect by writing O for overstated, U for understated or X for no effect. b. REQUIREMENTS: а. Indicate the amount of over or under statement. EFFECT AMOUNT 1. On 2004 net income of the omission of both accrued expense and unearned income at the end of 2002, 2003 and 2004 when considered together. 2. On Retained Earnings after closing at Dec. 31, 2004 of the omission unearned income at the end of 2002, 2003 and 2004. 3. On working capital at December 31, 2004 of the omission of accrued income at the end of 2002, 2003 and 2004 when considered together. 4. On working capital at Dec. 31, 2004 of the omission of unearned income at the end of 2002, 2003 and 2004. 5. On Retained Earnings after closing at Dec. 31, 2004 of the omission of accrued expenses at the end of 2002, 2003 and 2004. 6. On working capital at Dec. 31, 2004 of the omission of prepaid expenses at the end of 2003 7. On Retained Earnings after closing at Dec. 31, 2004 on the omission of prepaid expenses at the end of 2002 and 2003. 8. On 2003 net income of the omission of accrued expenses at the and 2004. end of 2002. 9. On 2004 net income of the omission of accrued income at the end of 2002, 2003 and 2004 when considered together. 10. On the 2003 net income of the omission of both accrued income and prepaid expense at the end of 2002 and 2003. 11. On the 2004 net income of the omission of prepaid expenses at the end of 2003 and 2004. 12. On 2004 net income of the omission unearned income at the end of 2002 and 2003. 13. On Retained Earnings before closing at Dec. 31, 2002 of the omission of accrued income at the end of 2002. 14. On the 2004 net income of the omission of accrued expenses at the end of 2002, 2003 and 2004 when considered together. 15. On Retained Earnings after closing at Dec. 31, 2004 of the omission of both accrued expenses and unearned income at the end 2002, 2003 and 2004 when considered together.
Expert Answer:
Answer rating: 100% (QA)
2002 2003 2004 Answer of point 1 Accrued Expense Unearned Income 18000 31500 27000 9000 22500 13500 ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
You have been engaged to audit the financial state-ments of Broadwall Corporation for the year ended December 31, 2014. During the year, Broadwall obtained a long- term loan from a local bank...
-
You have been engaged to audit the financial statements of Hardy Hardware Distributors Inc., as of December 31. In your review of the corporate nonfinancial records, you have found that Hardy...
-
You have been engaged to audit the financial statements of Broadwall Corporation for the year ended December 31, 20X2. During the year, Broadwall obtained a long-term loan from a local bank pursuant...
-
According to the law of sales contracts, all parties must act in good faith, which means they must act honestly. True/False
-
Each autumn, as a hobby, Mary Snyder weaves cotton placemats to sell at a local craft shop. The mats sell for $ 30 per set of four mats. The shop charges a 20% commission and remits the net proceeds...
-
Figure shows a partially completed MPS record for ball bearings. a. Develop the MPS for ball bearings. b. Four customer orders arrived in the following sequence: Assume that you must commit to the...
-
Cubs Incorporated manufactures a product with a selling price of $60 per unit. Units and monthly cost data follow: Cubs Inc. pays all bills in the month incurred. All sales are on account with 50...
-
The average expenditure on Valentine's Day was expected to be $100.89 (USA Today, February 13, 2006). Do male and female consumers differ in the amounts they spend? The average expenditure in a...
-
A colored wheel is spun 50 times and the results are shown in the table below. What is the experimental probability of landing on blue? Write answer in reduced fraction form. Blue Red Green 15 18 17
-
1. Using the Malin's Makeovers QuickBooks data file (Malin.qbw or Malin), record entries for the source documents for February. If you have completed the source documents using this company in the...
-
Iran supplies 10% of the world market in Crude oil. The market demand for Crude is price-inelastic, with CC = -0.25. The Ayatollah has come up with a new idea well withhold half of our oil from the...
-
As part of your annual audit of Fall Camper Company, you have the responsibility for preparing a report on internal control. Your workpapers include a completed internal control questionnaire and...
-
You have been engaged to perform a review service for the partnership of Reed and Wright. Your review does not uncover any material errors of omission or commission in the company's financial...
-
An inexperienced staff assistant issues a four-paragraph report on a financial forecast. The first and last paragraphs of the report are shown below. We have examined the accompanying financial...
-
Are time sheets required for QuickBooks Accountant to process payroll?
-
Brown, CPA, received a telephone call from Calhoun, the sole owner and manager of a small corporation. Calhoun asked Brown to prepare the financial statements for the corporation and told Brown that...
-
production department. (Click the icon to view the data) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of...
-
The graph of an equation is given. (a) Find the intercepts. (b) Indicate whether the graph is symmetric with respect to the x-axis, the y-axis, or the origin. -3 6 -6 3 x
-
Study the format of the analysis of variances in Exhibit 12-12. Suppose production is 156,000 units. Also assume the following: Other data are as shown in Exhibit 12-12. Prepare an analysis of...
-
The following questions are based on the data contained in Exhibit 12-9. 1. Suppose actual production and sales were 8,000 units instead of 7,000 units. (a) Compute the sales-volume variance. Is the...
-
Belfair Kayak Company makes molded plastic kayaks. Standards costs for an entry-level whitewater kayak are: Direct materials, 60 kilograms @ $5.50 per kilogram Direct labour, 1.5 hours $16 per hour...
Study smarter with the SolutionInn App