While auditing the 2007 financial statements of Warder Corporation, you found evidence that the following were not

Question:

While auditing the 2007 financial statements of Warder Corporation, you found evidence that the following were not included in its current liabilities on the December 31, 2007 balance sheet:

1. Convertible bonds maturing in 60 days that were never converted.

2. Note payable due two months after the balance sheet date, with refinancing agreement entered into four weeks after the balance sheet date.

3. Notes payable of Warder’s completely owned subsidiary due its stockholders and payable upon demand.

4. Deposits from customers on equipment ordered by them from Warder.

Required

Discuss the assumptions needed for Warder to correctly exclude the previously mentioned items from the December 31, 2007 current liabilities. The balance sheet was issued on March 3, 2008.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...