In this mini-case you will focus on performing one aspect of the test of details on the accounts payable balance ? the search for unrecorded liabilities. To Identify possible unrecorded liabilities you will compare the payments mode after year end with the accounts payable listing as of the end of the year. In performing this comparison particular attention should be given to any payment made on the disbursements journal for which there was not on accounts payable balance as of year end. Your responsibility Is to identify the transactions on the cosh disbursements journal that the audit team should investigate and review further to determine if a liability should have been recorded as of year end Work paper 11-2 contains a listing of the cash disbursement journal entries made in the first few days of the following year end Compare the transactions on the cash disbursements journal with the accounts payable listing on work paper 11-1 Use the appropriate tick mark to evidence your review of each transaction.

Transcribed Image Text:

EARTHWEAR CLOTHIERS Accounts Payable Listing December 31, 2016 Vendor Name Aarhus Industries Alpas Cashmere American Apparel Anderson Clothes, Inc. Apparel Concepts Asian Textile Resource Group C&S Manufacturing Inc. CDSB Retail Chami Design Inc. Chief Jack International Deguire Halden Equipment Leasing Europe By Post Distribution Services Fairway Corporation Ltd. Fashion & Craft Industria Americana, Ltda. Mail Works Mauler Creations Mountain West Properties Group MS Leather Factory National Retail Leaseholdings Southside Apparel Stephenson Promotion Texwin Pacific Ltd. Warehouse Solutions Leasing Washington Mfg., Inc. Western Wear Textiles Zantec Bros. Amount Due 94,840 34,522 25,407 + V 345,392 434,032 + V 25,646,163 + V 134,043 1,538,902 + V 342,340 112,034 3,475,452 + V 774,892 87,232 +V 23,452 14,292,301 tv 823,343 990,822 987,480 40,501 + V 1,839,024 + V 345,346 69,291 105,021 + V + V 1,334,921 234,802 45,475 8,920 + V $ 54,185,950 LEGEND F = Footed. t = Traced to accounts payable subsidiary records. V = Voucher packets examined for transaction validity. No exceptions. T/B=Agreed to trial balance. Work Paper 11-2: EARTHWEAR CLOTHIERS Excerpt from EarthWear Cash Disbursements Journal CASH DISBURSEMENTS JOURNAL from 1/1/2017 through 1/11/2017 Payee G/L Account # Cash Apparel Concepts 12087-25201-5608971-113 254,032 (Click to select) American Apparel 11023-25201-1435149-881 25,407 (Click to select) ✓ Texwin Pacific Ltd. 15237-56213-8146523-300 105,021 (Click to select) ✓ Lewis Hardware 33000-91200-1253000-100 20,536 (Click to select) ✓ MS Leather Factory 11023-25750-4152610-108 40,501 (Click to select) ✓ Stephenson Promotion 55126-11592-1001220-100 157,206 (Click to select) ✓ C&S Manufacturing Inc. 11023-25201-4441563-656 134,043 (Click to select) ✓ Intermountain Gas 99000-61000-1642000-100 37,554 (Click to select) ✓ $494,861 FS Check(C)/ Date Wire(W) #Voucher# Description 1/1/2017 W:1863 195948 Inventory PO# 627-2561-1818 1/1/2017 C:57698 195949 Inventory PO# 627-2561-1821 1/2/2017 W: 1864 195950 Inventory PO# 627-2561-1822 1/3/2017 C:57699 520444 Building Supply 1/3/2017 C:57700 195951 Inventory PO# 627-2561-1823 1/4/2017 C:57701 265152 Advertising 1/7/2017 C:57702 195952 Inventory PO# 627-2561-1825 1/9/2017 C:57703 375929 Utilities January Totals to Date EARTHWEAR CLOTHIERS Accounts Payable Listing December 31, 2016 Vendor Name Aarhus Industries Alpas Cashmere American Apparel Anderson Clothes, Inc. Apparel Concepts Asian Textile Resource Group C&S Manufacturing Inc. CDSB Retail Chami Design Inc. Chief Jack International Deguire Halden Equipment Leasing Europe By Post Distribution Services Fairway Corporation Ltd. Fashion & Craft Industria Americana, Ltda. Mail Works Mauler Creations Mountain West Properties Group MS Leather Factory National Retail Leaseholdings Southside Apparel Stephenson Promotion Texwin Pacific Ltd. Warehouse Solutions Leasing Washington Mfg., Inc. Western Wear Textiles Zantec Bros. Amount Due 94,840 34,522 25,407 + V 345,392 434,032 + V 25,646,163 + V 134,043 1,538,902 + V 342,340 112,034 3,475,452 + V 774,892 87,232 +V 23,452 14,292,301 tv 823,343 990,822 987,480 40,501 + V 1,839,024 + V 345,346 69,291 105,021 + V + V 1,334,921 234,802 45,475 8,920 + V $ 54,185,950 LEGEND F = Footed. t = Traced to accounts payable subsidiary records. V = Voucher packets examined for transaction validity. No exceptions. T/B=Agreed to trial balance. Work Paper 11-2: EARTHWEAR CLOTHIERS Excerpt from EarthWear Cash Disbursements Journal CASH DISBURSEMENTS JOURNAL from 1/1/2017 through 1/11/2017 Payee G/L Account # Cash Apparel Concepts 12087-25201-5608971-113 254,032 (Click to select) American Apparel 11023-25201-1435149-881 25,407 (Click to select) ✓ Texwin Pacific Ltd. 15237-56213-8146523-300 105,021 (Click to select) ✓ Lewis Hardware 33000-91200-1253000-100 20,536 (Click to select) ✓ MS Leather Factory 11023-25750-4152610-108 40,501 (Click to select) ✓ Stephenson Promotion 55126-11592-1001220-100 157,206 (Click to select) ✓ C&S Manufacturing Inc. 11023-25201-4441563-656 134,043 (Click to select) ✓ Intermountain Gas 99000-61000-1642000-100 37,554 (Click to select) ✓ $494,861 FS Check(C)/ Date Wire(W) #Voucher# Description 1/1/2017 W:1863 195948 Inventory PO# 627-2561-1818 1/1/2017 C:57698 195949 Inventory PO# 627-2561-1821 1/2/2017 W: 1864 195950 Inventory PO# 627-2561-1822 1/3/2017 C:57699 520444 Building Supply 1/3/2017 C:57700 195951 Inventory PO# 627-2561-1823 1/4/2017 C:57701 265152 Advertising 1/7/2017 C:57702 195952 Inventory PO# 627-2561-1825 1/9/2017 C:57703 375929 Utilities January Totals to Date

Answer rating: 100% (QA)

Legend T Traced to accounts payable Listing F Flagged for further inquiry and rev... View the full answer