bulldog co. prepares its financial statements in accordance with IFRS and the company is preparing its december 31, year 3 finacial statements.
EXCEL AUTH.UI. OVERVIEW HELP Memo From Controller In working on the Year 3 financial statements, my staff was alerted by the internal audit group of a discrepancy that occurred in Years 1 and 2. It seems that duplicate sales transactions posted to the ledger in both years, yet were undetected until now. The total impact of the duplicate postings is as follows: Year 1: $100,000 Year 2: $135,000 The tax rate in Years 1-3 is 30 percent. This discovery is being taken into account as the financial statements are prepared. In addition, the appropriate entry will be recorded in the general ledger at the end of Year 3. The IT department has been alerted regarding this finding so it can ensure that duplicate entries do not post to the general ledger in the future. FOTOVILIC E-mail From Accountant to Controller - Sally, You'll recall that the court ruling was not in our favor last year. I have included the legal letter from Haymore Law Firm to remind you of the specifics. At the end of Year 2, we believed that $1,000,000 was an accurate representation of the payments we would have to make to cover the claims. A provision entry was recorded in this amount. However, based on information from this first quarter, it seems that claims have increased by 25 percent. We need to take this into account so that our financial statements reflect this new information. Please let me know if you have any questions. Richard 1:41 PM E-mail From Accountant to Controller Letter From Law Firm To: Controller, Bulldog Co. From: Larry Devine Re: Court Decision Date: November 15, Year 2 We have received the ruling from the court regarding the claim against Bulldog Co. The claim stated that credit customers are being charged an excessive penalty for past due payments. The court has agreed that the $40 penalty is excessive and is requiring Bulldog Co. to reimburse customers who had these fines imposed on them. Sincerely Larry Devine Attorney. Haymore Law Firm de m ax * 1:41 PM 4/26/2020 EXHIBITS close a exhibit Memo From Controller E-mail From Accountant t... Letter From Law Firm Bulldog Co. prepares its financial statements in accordance with IFRS and the company is preparing its December 31, Year 3, financial statements. All adjustment amounts are material and the company justified all of the changes referred to below. No prior adjustments have been recorded. For each of the items listed, use the information in the exhibits to prepare the journal entry that should be recorded at the end of Year 3. To prepare each required journal entry: O Type here to search o Be EXHIBITS close all exhibits Memo From Controller E-mail From Accountantt... Letter From Law Firm . Click on a cell in the Account Name column and select the appropriate account. An account may be used once or not at all for a journal entry. Enter the corresponding debit or credit amount in the associated column. All amounts will be automatically rounded to the nearest dollar. Not all rows in the table might be needed to complete each journal entry If no journal entry is needed, check the "No Entry Required" box at the top of the table as your response. Record any required Year 3 journal entry related to the reimbursement provision Type here to search O e Memo From Controller E-mail From Accountant t... Letter From Law Firm Record any required Year 3 journal entry related to the reimbursement provision No Entry Required Account Name Debit Credit 123 Type here to search ORII e EXHIBITS close all exhibits Memo From Controller E-mail From Accountant t... Letter From Law Firm In the cell below select the type of change from the option list provided for the entry recorded above. Type of Change Record any required Year 3 journal entry related to the Years 1 and 2 sales. No Entry Required Account Name Debit Credit Type here to search o PPD e EXHIBITS close all exhibits Memo From Controller E-mail From Accountant t... Letter From Law Firm Record any required Year 3 journal entry related to the Years 1 and 2 sales. No Entry Required Account Name Debit Credit 123 Type here to search o ni e a Memo From Controller E-mail From Accountant t.. Letter From Law Firm In the cell below select the type of change from the option list provided for the entry recorded above Type of Change o Type here to search o te EXCEL AUTH.UI. OVERVIEW HELP Memo From Controller In working on the Year 3 financial statements, my staff was alerted by the internal audit group of a discrepancy that occurred in Years 1 and 2. It seems that duplicate sales transactions posted to the ledger in both years, yet were undetected until now. The total impact of the duplicate postings is as follows: Year 1: $100,000 Year 2: $135,000 The tax rate in Years 1-3 is 30 percent. This discovery is being taken into account as the financial statements are prepared. In addition, the appropriate entry will be recorded in the general ledger at the end of Year 3. The IT department has been alerted regarding this finding so it can ensure that duplicate entries do not post to the general ledger in the future. FOTOVILIC E-mail From Accountant to Controller - Sally, You'll recall that the court ruling was not in our favor last year. I have included the legal letter from Haymore Law Firm to remind you of the specifics. At the end of Year 2, we believed that $1,000,000 was an accurate representation of the payments we would have to make to cover the claims. A provision entry was recorded in this amount. However, based on information from this first quarter, it seems that claims have increased by 25 percent. We need to take this into account so that our financial statements reflect this new information. Please let me know if you have any questions. Richard 1:41 PM E-mail From Accountant to Controller Letter From Law Firm To: Controller, Bulldog Co. From: Larry Devine Re: Court Decision Date: November 15, Year 2 We have received the ruling from the court regarding the claim against Bulldog Co. The claim stated that credit customers are being charged an excessive penalty for past due payments. The court has agreed that the $40 penalty is excessive and is requiring Bulldog Co. to reimburse customers who had these fines imposed on them. Sincerely Larry Devine Attorney. Haymore Law Firm de m ax * 1:41 PM 4/26/2020 EXHIBITS close a exhibit Memo From Controller E-mail From Accountant t... Letter From Law Firm Bulldog Co. prepares its financial statements in accordance with IFRS and the company is preparing its December 31, Year 3, financial statements. All adjustment amounts are material and the company justified all of the changes referred to below. No prior adjustments have been recorded. For each of the items listed, use the information in the exhibits to prepare the journal entry that should be recorded at the end of Year 3. To prepare each required journal entry: O Type here to search o Be EXHIBITS close all exhibits Memo From Controller E-mail From Accountantt... Letter From Law Firm . Click on a cell in the Account Name column and select the appropriate account. An account may be used once or not at all for a journal entry. Enter the corresponding debit or credit amount in the associated column. All amounts will be automatically rounded to the nearest dollar. Not all rows in the table might be needed to complete each journal entry If no journal entry is needed, check the "No Entry Required" box at the top of the table as your response. Record any required Year 3 journal entry related to the reimbursement provision Type here to search O e Memo From Controller E-mail From Accountant t... Letter From Law Firm Record any required Year 3 journal entry related to the reimbursement provision No Entry Required Account Name Debit Credit 123 Type here to search ORII e EXHIBITS close all exhibits Memo From Controller E-mail From Accountant t... Letter From Law Firm In the cell below select the type of change from the option list provided for the entry recorded above. Type of Change Record any required Year 3 journal entry related to the Years 1 and 2 sales. No Entry Required Account Name Debit Credit Type here to search o PPD e EXHIBITS close all exhibits Memo From Controller E-mail From Accountant t... Letter From Law Firm Record any required Year 3 journal entry related to the Years 1 and 2 sales. No Entry Required Account Name Debit Credit 123 Type here to search o ni e a Memo From Controller E-mail From Accountant t.. Letter From Law Firm In the cell below select the type of change from the option list provided for the entry recorded above Type of Change o Type here to search o te
