Reference no: EM13142182
You have been engaged to review the financial statements of Longfellow Corporation. In the course of your examination you conclude that the bookkeeper hired dur- ing the current year is not doing a good job. You notice a number of irregularities as follows.
1. Year-end wages payable of $3,400 were not recorded because the bookkeeper thought that "they were immaterial."
2. Accrued vacation pay for the year of $31,100 was not recorded because the bookkeeper "never heard that you had to do it."
3. Insurance for a 12-month period purchased on November 1 of this year was charged to insurance expense in the amount of $3,300 because "the amount of the check is about the same every year."
4. Reported sales revenue for the year is $1,908,000. This includes all sales taxes collected for the year. The sales tax rate is 6%. Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax Expense account is $103,400.
Instructions
Prepare the necessary correcting entries, assuming that Longfellow uses a calendar-year basis.
|
Evaluate correlation between two instruments
: The correlation between his test and the BDI was r =.14. Evaluate this correlation. What does this correlation tell us about the relationship between these two instruments?
|
|
Conventional accounting records
: Which of the following costs is often important in decision making, but is omitted from conventional accounting records?
|
|
The simplest and molecular formulas for caffeine are?
: Caffeine is made up of 49.5% C, 5.2% H, 16.5%O, and 28.9% N. A solution made up of 8.25g of caffeine and 100.0 of benzene (d=0.887g/ml) freezes at 3.03C. Pure benzene (kf=5.10 degrees C/m) freezes at 5.50C.
|
|
The assignment has been designed
: The assignment has been designed to assess students' understanding of the usage of data communications and computer networking technologies in real life and to demonstrate their engagement with the subject.
|
|
Prepare the necessary correcting entries
: Prepare the necessary correcting entries, assuming that Longfellow uses a calendar-year basis.
|
|
Assimilation versus self identity
: Discuss two cases where Jews had to lose or gave up their identities as Jews in order to advance themselves in America and discuss two cases where Jews refused to give up their Jewishness even if it meant material economic or social loss
|
|
Profitability as measured by return on sales
: Disney has four primary business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products. Which of these four has the best 2007 profitability as measured by return on sales?
|
|
How many moles of methane (ch4) gas are present
: How many moles of methane (CH4) gas are in 745 mL at 25.5C and 730 torr?
|
|
Ellen is a graduate
: Ellen is a graduate of The College of Alternative Medicine and is looking to start her own business. She decides to open a meditation studio and looks around the inner city suburb of Paddington for suitable premises. She eventually finds a perfect te..
|