During the review of loan contracts and agreements, the auditor would most likely figure out the following, except:

Q: On October 1, Goodwell Company rented warehouse space to a tenant for $1,600 per month and received ...

A: Adjusting Entry – Adjusting entries do not include cash. This also ensures that the transactions inc...

Q: Support the answers with calculations

A: The income statement explains the financial performance of the company for a particular period of ti...

Q: Sage Hill Fashion Company enters into a lease arrangement with Highpoint Leasing for 5 years. Sage H...

A: Right-of-use assets will be recognized at the present value of minimum lease payment obligations.

Q: urn not later than January 15, 2022. The tax due per his return is P100,000.

A: Failure to pay tax due according to rules and regulations before the stipulated date attracts the in...

Q: How does Depreciation Expense impact Declan's Designs' 2022 Statement of Cash Flows?   Question 16 ...

A: What is Depreciation? It is a decrease in the monetary value of a fixed asset due to normal wear and...

Q: On January 1, 20x1, Entity A acquires 25% interest in Entity B for P800,000. Entity B reports profit...

A: The carrying amount, also recognized as the carrying value, is indeed the asset's cost less deprecia...

Q: The December 31, 2021 and 2020 comparative financial statements of Galley Company showed equipment w...

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage a...

Q: eal Leasing Company agrees to lease equipment to Flint Corporation on January 1, 2020. The following...

A: Economic Life 8         Fair Value $406000       Guaranteed Residual Value $36300       Cost P...

Q: Amber sold her personal property in 2019, with details as follows: Cost                            ...

A: Contract Price is the agreed price of asset sold/purchase. Here  it is important to know that Mortga...

Q: Failure to provide any level of care in fulfilling a duty owed to another party, including reckless ...

A: Constructive fraud occurs when you falsify or omit vital facts when speaking with somebody who belie...

Q: A taxpayer received a notice from the BIR to file his 2020 income tax return not later than January ...

A: solution concept provision The interest penalty is levied @ 20% pa of the tax due after April 15 of ...

Q: On December 31, it was determined that the market value of the corporate bonds, exclusive of accrued...

A: Bond: These are the fixed instrument that investors buy from the company and receive interest. These...

Q: Job 123 was recently completed by BudolBudol Me Corporation. The following data have been recorded o...

A: The job cost is used to estimate the individual cost of the product. It includes both direct and ind...

Q: changes with the type of company is:

A:                                Balance Sheet is the statement showing financial position of the busi...

Q: Corporation Code, Both, and Neither 1. Residency of incorporators are insignificant   a. Corporatio...

A: Hi student Since there are multiple questions, we will answer only first question. 

Q: What are the problems of an insurance industry that are primarily regulated at the state level?

A: Insurance industry refers to the market where insurance companies play an active part in providing i...

Q: FIFO and LIFO costs under perpetual inventory system The following units of an item were available ...

A: Total cost = number of units * cost per unit In LIFO method , the last purchase is sold first.  So ,...

Q: A calendar year corporation has Current Earnings & Profits of $100,000. It started the year with an ...

A: Statement of income shows all the income(s) earned by the organization. There are certain ways for c...

Q: Determinethestatusofthematerialandlabourfortheconcreteworkof the first floor.

A: Material and labour are two important resources that are used for production and manufacturing of go...

Q: XYZ Corporation has a lower and an upper limit for its savings account at P40,000 and P70,000 respec...

A: Solution Concept Miller-Orr Model                 As per this model                 -when cash balan...

Q: Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activit...

A:

Q: March 120,000 120,000 70,000 100,000 Аprl 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000...

A: Contribution of the Project   Sales.                                    xxxxx-Variable cost.        ...

Q: For each account, identify whether it is included in a post- closing trial balance. Included in post...

A: Closing Entries - Closing entries are required to close the temporary accounts after making financi...

Q: Current Year Previous Year counts payable ng-term debt $46,299 $67,100 51,972 42,600 sed on this inf...

A: Accounts payable (AP) are amounts owed to vendors for goods or services not yet paid for. The accoun...

Q: Work in process Inventory jan, 1 2009 Direct materials inventory, dec. 31,2009 Finished goods invent...

A: The direct costs are the costs that are directly related to production such as direct materials and ...

Q: . Use the accounts listed to create a multistep income statement.

A: solution multistep income statement is a income statement where the operating income and expenses ar...

Q: Choy, after receiving her degree in Hotel and Restaurant Management began her own business called Ch...

A: Accounting equation is one of the important concept in accounting which says that total assets must ...

Q: Which of the following procedures would an auditor most likely perform in searching for unrecorded l...

A: Audit is the process of examining and verifying books of accounts and financial information and this...

Q: V Corp. owns 70% of F Corp’s ordinary shares. On August 1, 2020, F Corp. sold a machine to V Corp. f...

A: solution concept The non controlling interest refers to the interest of the minority shareholders In...

Q: 2-a. Refer to the original data. How much will net operating income increase (decrease) per month if...

A: Operating income refers to the income or gross profit generated by the company from its operations o...

Q: KK Corporation is analyzing its option to restrict its credit terms. Current sales level is P6,000,0...

A: solution given For current Current sales level                  =P6,000,000 average receivables bala...

Q: The following data were taken from the records of Browntree Corporation at the end of the fiscal yea...

A: Multi Step Income statement is that income statement which shows all incomes and all expenses of the...

Q: 1

A: The present value factor (PVF) is a financial treatment used for estimation of the current value of ...

Q: The following were taken from the records of LML Co. as of December 31, 2010: • Checks drawn but not...

A: The transactions till December 31 , 2010 cash will be included in LML's December , 2010 cash. Custom...

Q: An analysis of the cash book and other records of Byle Corporation shows the following data: Account...

A: The income statement is prepared to record the revenues and expenses of the current period. The inco...

Q: Computing Taxable Income: Ross Martin arrived at the following tax information… Gross salary: $56,1...

A: 1) Taxable income: Gross income of person is calculated from all resources , thereafter deduction pr...

Q: Question 8 You have just been assigned as the manager of an engagement with an audit client. Before ...

A: Audit Engagement: An audit engagement is an understanding between a client and a free outsider inspe...

Q: On January 1, 2019, Ferrothorn Co. sold equipment, to its subsidiary, Klang Corp., for P115,000. The...

A: Actual cost of asset=125000 less Accumulated depreciation =45000 Value of asset as on 1.1.19= 80000 ...

Q: An operating cycle

A: Operating cycle: Operating cycle is period at which the company operates its operations. Or the time...

Q: Accounts payable subsidiary ledger. Purchase journal 15 days before and 15 days after report date. ...

A: Assertions are claims made by the management of the company which are further verified by the audito...

Q: Phillip Company provided the following information with respect to its cash and cash equivalents on ...

A: Cash and cash equivalents- Cash and cash equivalents are the most liquid current assets that are sho...

Q: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $187,000, expenses of $104,700...

A: >Owner’s capital balance is the part of Equity.>It contains the amount of amount invested by t...

Q: Age in days Receivable balances 0- 15 180,000 16 - 30 108,000 31 - 60 95,000 61 90 72,000 91 - 120 5...

A: Doubtful accounts are those accounts to whom business has made credit sales on account and it is dou...

Q: For each account, identify whether it is included in a post- closing trial balance. Included in post...

A: All the temporary accounts like expenses, revenus and dividends are closed and are not shown in the ...

Q: ecord adjusting journal entries for each separate case elow for year ended December 31. ssume no oth...

A: To keep track of financial transactions, journal entries are used. To create a journal entry, you en...

Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 202...

A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date t...

Q: On December 27, 20x1, YGS Co. received a sale order for a credit sale of goods with selling price of...

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...

Q: You are currently working as a planner in a construction company. The company is currently running 4...

A: The actual value of work done is given for each project and direct cost. The overhead is indirect co...

Q: Stew and Peed entered into a partnership on March 1, 2017 investing P 2,000,000 and P 1,000,000 resp...

A: Two or more person can start partnership firm. They usually contribute capital at the start of partn...

Q: LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cullumber, Inc. fo...

A: Lease is an agreement or arrangement between two parties, in which one party provides its asset for ...

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.