Reference no: EM132497476
Question - Janice Rush, is your client. She is the owner of a high-end boutique that sells jewelry, fine china, sterling silver flatware, and other gifts. The store has ten employees, mostly sales personnel who advise customers, handle inventory and process sales transactions. Ms. Rush is an astute business professional but she has little training in business.
She has reached out to you, representing ABC Accounting Firm, for a few reasons:
She has noticed a decrease in her inventory but there does not appear to be a correlating increase in sales.
She has also noticed discrepancies between the dollar amount generated through sales and the dollar amount deposited in the bank.
She does not have a strong general ledger system as she deals with small volume transactions that have high values. She also does not have a strong system of internal controls.
You have had the opportunity to meet with Ms. Rush in person, along with your Partner-level supervisor from ABC Accounting Firm, to better understand her concerns and share with her some professional advise. Subsequent to the meeting, you need to follow up with Ms. Rush.
Letter needs to be written to Ms. Rush to serve as a follow-up to the discussion. The letter will be provided to your Partner for review prior to sending to Ms. Rush. Within the letter, include the following:
Provide an overview of the financial reporting and tax implications if Ms. Rush is unable to reconcile her inventory, sales and deposits.
Discuss the importance of a strong system of internal controls, while providing at least 5 suggestions as to what types of controls could be implemented in the short term with more effective controls being implemented in the long term.
Identify other concerns Ms. Rush may not have considered but should evaluate.
Define what services ABC Accounting Firm could provide to further assist Ms. Rush.
Determine the total payroll tax expense
: Use this information to determine the total payroll tax expense for Baltimore Company as related to Barbara's earnings
|
Make the income statement and balance sheet
: Prepare the income statement, statement of owner's equity, and balance sheet. Do not enter dollar signs or commas in the input boxes.
|
Prepare the December consolidation entries
: Prepare the December 31, 2015, consolidation entries necessitated by the retirement of the debt by Keller and subsequent purchase of the debt by Breaux
|
What are the main findings from the research
: What are the main findings from the research? Your paper or video should essentially be a summary of the main findings and key ideas in the current research on.
|
Discuss the importance of a strong system
: Discuss the importance of a strong system of internal controls, while providing at least 5 suggestions as to what types of controls
|
Calculate the dividend that should be distributed if any
: Calculate the dividend that should be distributed if any, and in that case show the book entry that should be journalized and when should it be accrued
|
What is a moral dilemma at work here
: The title of the chapter is titled "the pesticide controversy". What is the controversy? Or in other words, what is a moral dilemma at work here.
|
Prepare journal entries on the Bolton Co
: On June 3, Bolton Co. sold to Arquette Co. merchandise having a sales price of P2,000 with terms 2/10, Prepare journal entries on the Bolton Co
|
What is a multinational corporation
: Describe the current International Monetary System. How does the current system differ from the system that was in place prior to August 1971?
|