Note that a single account activity may not be suspicious

Assignment Help Accounting Basics

Reference no: EM131017207

Review the following records of activity in various accounts and identify any suspicious activity. Highlight the key information associated with the suspicious activity. For each action, identify why it is suspicious. Note that a single account activity may not be suspicious until paired with another activity.

1-2	ABC paid DEF $5,000 on February 5, using check #2394, written on Bank of America account 098765432. The memo line stated: “for product.”
1-3	ABC paid GHI $30,000 on November 12, using check #3651, written on Bank of America account 098765432. The memo line stated: “loan.”
1-4	ABC paid JKL $25,000 on August 30, in a wire transfer between Bank of America account 098765432 and the Royal Bank of Canada (a/c #123456789) for further credit to Cayman Island Bank, account 234567890, Cayman Islands.
2-1	DEF paid ABC $10,000 on January 3, using check #1792, written on Wells Fargo account 987654321. The memo line stated: “repay loan.”
2-2	DEF paid JKL $13,000 on October 1, in a wire transfer between Wells Fargo account 987654321 and the Royal Bank of Canada (a/c #123456789) for further credit to Cayman Island Bank, account 234567890, Cayman Islands.
3-1	JKL wired $20,000 on February 9, from Cayman Island Bank, account 234567890, Cayman Islands, to Royal Bank of Canada (a/c #123456789) for further credit to Bank of America account 098765432.
4-1	GHI deposited 10 U.S. postal money orders into Wells Fargo account 987654321 on November 13, each for $2,999, purchased on November 12 at various postal facilities in Boston, Massachusetts.

Reference no: EM131017207

Questions Cloud

How can you create and maintain the chart of accounts : Describe them. What are some key reports one can generate to measure the firm's financial performance?

Judy a cash basis taxpayer leases office buildings to : Judy, a cash basis taxpayer, leases office buildings to commercial tenants. During 2015, she receive $10,000 from various tenants a refundable damage deposits, $300,000 for 2015 rents, and $50,000 for 2016 rents. How much should Judy include in 2015 ..

Explain how to calculate the allowance for doubtful accounts : Explain how to calculate the allowance for doubtful accounts and the bad-debt expense in a hospital.

What amount of net income will be reported on an income : Refer to the information above. What amount of net income will be reported on an income statement for the month of October?$18,500.$22,500.$78,000.$100,500.

Note that a single account activity may not be suspicious : For each action, identify why it is suspicious. Note that a single account activity may not be suspicious until paired with another activity.

Circle globes stock has a beta of 109 and a standard : Circle Globes stock has a Beta of 1.09 and a standard deviation of 9.23%. The market risk premium is 8% and the risk-free rate is 3.8%. What is the cost of equity?

Net working capital other than cash : Net working capital, other than cash, is $3,220. Fixed assets are $17,530 and current liabilities are $1,690.

The collection of accounts receivable is recorded : The collection of accounts receivable is recorded by a:A)Debit to Cash and a debit to Accounts Receivable.B)Credit to Cash and a credit to Accounts Receivable.C)Debit to Cash and a credit to Accounts Receivable.D)Credit to Cash and a debit to Account..

Sale including the cost of the merchandise sold : The cost of the merchandise sold is $152,700. Showcase Co. issues a credit memo on March 5 for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice on March 29.

User Account

All Pages