Reference no: EM132645063
Yale Express, a short-haul trucking firm, turned over much of its cargo to local truckers to complete deliveries. Yale collected the entire delivery charge. When billed by the local trucker, Yale sent payment for the final phase to the local trucker. Yale used a cutoff period of 20 days into the next accounting period in making its adjusting entries for accrued liabilities. That is, it waited 20 days to receive the local truckers' bills to determine the amount of the unpaid but incurred delivery charges as of the balance sheet date.
On the other hand, Republic Carloading, a nationwide, long-distance freight forwarder, frequently did not receive transportation bills from truckers to whom it passed on cargo until months after the year-end. In making its year-end adjusting entries, Republic waited for months in order to include all of these outstanding transportation bills.
When Yale Express merged with Republic Carloading, Yale's vice president employed the 20-day cutoff procedure for both firms. As a result, millions of dollars of Republic's accrued transportation bills went unrecorded. When the company detected the error and made correcting entries, these and other errors changed a reported profit of $1.14 million into a loss of $1.88 million!
Problem 1: What might Yale Express's vice president have done to produce more accurate financial statements without waiting months for Republic's outstanding transportation bills?
|
Have such laws and registries become self-defeating
: Convicted sex offenders must register their residences upon release from custody. They are prohibited from living near schools, day care facilities and public.
|
|
How much money should be prepare today to finance
: The maintenance cost is equivalent, How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?
|
|
What is the value of the equity-linked cd
: Charles Schwab once offered investors an equity-linked Certificate of Deposit, issued by First Union National Bank.
|
|
Find four subsystems of the budget execution phase
: What are the principle objectives of each of the four subsystems of the budget execution phase?
|
|
What might yale express vice president have done to produce
: What might Yale Express's vice president have done to produce more accurate financial statements without waiting months for Republic's
|
|
What is the FASB recommendations on the reporting
: What is the FASB recommendations on the reporting of various items on balance sheet, such as current assets, current liabilities, and so forth
|
|
Calculate the employee gross pensionable or taxable income
: An employee in Manitoba earns $750.00 per week and has a weekly non-cash taxable benefit of $10.00, Calculate the employee gross pensionable or taxable income
|
|
Estimating the company wacc
: The total book value of WTC's equity is $10 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5,
|
|
What adjusting entry was overlooked immediately merger
: What adjusting entry was overlooked immediately following the merger? A collection of $3,000 from a client on account was debited to Cash $200 and credited
|