Discuss how the event will be treated

Assignment Help Accounting Basics
Reference no: EM133020060

Question - Sunlight Ltd has placed deposits with its major overseas supplier, located in Adelaide in Australia, totaling AUD700,000 to manufacture specially branded shoes on 25 May 2021. On 7 June 2021, the overseas supplier ceased its business due to Lockdown Order in Australia issued due to the COVID-19 pandemic.

The legal team at Sunlight has informed you on 11 July 2021 that the deposit would not be recovered from the overseas supplier. Sunlight Ltd purchased over AUD6 million worth of branded shoes from this supplier every year.

Sunlight Ltd audit's year-end is 30 June 2021, and the audit report is due to be signed on 15 August 2021.

Required -

(a) Discuss four (4) reasons why auditors need to document their work in the working papers.

(b) Discuss how the above event will be treated in the financial statements of Sunlight Ltd for the year ended 30 June 2021.

Reference no: EM133020060

Questions Cloud

Explain the internal controls george needs to have : Explain the internal controls George needs to have in place for the receipt of both cash and credit cards for the restaurant
What monthly compounded interest rate : Your company paid an invoice five months late. If the original invoice was for $6,450 and the amount paid was $6,948.48, what monthly compounded interest rate
What is the division turnover : Last year the division had total sales of $21,060,000, net operating income of $1,892,760, What is the division turnover
Determine the amount of factory overhead : During the month of February 2021, job A-1 incurred direct labor of 950 hours. Use this information to determine the amount of factory overhead
Discuss how the event will be treated : Discuss how the above event will be treated in the financial statements of Sunlight Ltd for the year ended 30 June 2021
What is the expected return on M Simon Inc : The beta of M Simon Inc., stock is 1.8, whereas the risk-free rate of return is 0.10. If the expected return on the market is 0.15, What is the expected return
Record all transactions on the appropriate dates : Question - Divine Apparel has 4,000 shares of common stock outstanding. Record all transactions on the appropriate dates for cash dividends
Milgram experiment-big history nl : Video being referred to - Milgram Experiment - Big History NL, threshold 6Questions to answer
Why did other intellectuals slander and libel epicurus : Why did other intellectuals slander and libel Epicurus?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd