electrowics and appliances alvo sold by the pareat evenpeny. Selico folented Mors. the parrnt, aperates tweter fetall ocekts in a lapge thouang metispoliean arve the scrvike kally beine sathall appliance and clectminies oo the servec center kor mepeir for wrvice trucis. shage value. One hatf your' dcprocitike is taken in the gear of acyevition and in the rear of dispoisil citripan L/Z02 Sold anc thefrer truk fir 3 ison The thak wis hally deprecited an 12349i Canh Trikk Qlic3: dowighe ane dethern thak for 34+,000 Triki. 38+000 Cdih 524.000 and the accumatated depreciation, ackundint to Seliers subieliary feduct at the dive of sale was 310,003 . Cakh Truek 57,000 7/25/02 Bought une scrvie trak for BAk,000 Truck stion Cash 52600 12/51/02 Reconded depecciation for 2000 Fout detivery trucls in 312.000 each = Fifteen service trucks i 3.000 each = Fotal Depreciation Expenec-Trukis stonion Accumalased Dcpreciation-Trods s106 ono Aequalme 2. Prepare an audit workpaper analyring the inlliseing acousts - Tracks - Accumulated depecranse-truks - Deprecution rspense-trimko - Giain (ion) oe disponal of trucks. Stan with the aufined talances at the begiening of the yeat. Reflect the trnisations as the year. Then compare these with the December 44, 3002 cheme hutunces and reount necessary audit aljuatments b. What are the audit ohyetives far purposs of the cactoise whar anle proceltares should be applied in mecting these ulipetived cedlure that you idrntifed in (b) above Selfers Service Center is a wholly owned subsidiary of Selfers Federated Stores. The com pany's function is to deliver furniture and appliances sold by the parent and to service electronics and appliances, also sold by the parent company. Selfers Federated Stores, the parent, operates twelve retail outlets in a large tricounty metropolitan area. The service center uses three delivery Irucks and fifteen service vehickes for delivering gowis and for making service calls rebated to larke appliances and electronic euipment. Customers typically bring small appliances and clectronics to the service center for repair. At January 1, 2002, Selfers Service Center reported audited balances of 5720,060 and 5350,000 for T Trucks' and "Accumubted Depreciation-Trucks, respectively. The vehicles consisted of fve delivery trukks custing $72,000 each and fifteen service trucks costing 52,000 each. Accumulated depreciation was $200,000 for delivery trucks and $150,000 for service trucks The cumpany depreciates all trucks on a straight-line hasis, asing a six-year life and aero salvage valie. One hall year's depreciation is taken in the yeat of acyuisition and in the year of disposal. The company Jepreciates all trucks on a straighe-line hasis. irsing a six-year lile and zero salvage valie. One-half year's depreciation is taken in the year of acquisition and in the ycar of dispesail During 2002. the following transactions and journal entrics were completed by the company 2/2/02 Sold one delivery truck for $4,000. The truck was fully depreciated at 12/31/41 Cash 5.000 Truik 5000 3/1/02 Bushht one detivery truck for 581,000 Truck58+,00058i,000 3/15,02- Sold ork service truck for 57,000 . This truck was purchased 8/15/99 for $2+,000 and the accumblated depreciatiom. according to Selfer's subsidiary lechger, at the date of sale was 510,000 . a. Prepare an audit workpaper analyzing the following accounts - Trucks - Accumulated depreciation-truks - Depreciation expensc-trucks - Gain (loss) on disposal of trucks Start with the audited balances at the beginning of the year. Reflect the traasactions as they should have been recorded during 2002 to arrive at audited balances at the end of the year. Then compare these with the December 31,2002 client halances and record necessary audit adjustments. b. What are the audit objectives for purposes of this exercise? What audit procedures should be applied in mecting these objectives? c. Add audit legends. Explain them at the bottom of your workpaper, describing the procedures that you identified in (b) above. electrowics and appliances alvo sold by the pareat evenpeny. Selico folented Mors. the parrnt, aperates tweter fetall ocekts in a lapge thouang metispoliean arve the scrvike kally beine sathall appliance and clectminies oo the servec center kor mepeir for wrvice trucis. shage value. One hatf your' dcprocitike is taken in the gear of acyevition and in the rear of dispoisil citripan L/Z02 Sold anc thefrer truk fir 3 ison The thak wis hally deprecited an 12349i Canh Trikk Qlic3: dowighe ane dethern thak for 34+,000 Triki. 38+000 Cdih 524.000 and the accumatated depreciation, ackundint to Seliers subieliary feduct at the dive of sale was 310,003 . Cakh Truek 57,000 7/25/02 Bought une scrvie trak for BAk,000 Truck stion Cash 52600 12/51/02 Reconded depecciation for 2000 Fout detivery trucls in 312.000 each = Fifteen service trucks i 3.000 each = Fotal Depreciation Expenec-Trukis stonion Accumalased Dcpreciation-Trods s106 ono Aequalme 2. Prepare an audit workpaper analyring the inlliseing acousts - Tracks - Accumulated depecranse-truks - Deprecution rspense-trimko - Giain (ion) oe disponal of trucks. Stan with the aufined talances at the begiening of the yeat. Reflect the trnisations as the year. Then compare these with the December 44, 3002 cheme hutunces and reount necessary audit aljuatments b. What are the audit ohyetives far purposs of the cactoise whar anle proceltares should be applied in mecting these ulipetived cedlure that you idrntifed in (b) above Selfers Service Center is a wholly owned subsidiary of Selfers Federated Stores. The com pany's function is to deliver furniture and appliances sold by the parent and to service electronics and appliances, also sold by the parent company. Selfers Federated Stores, the parent, operates twelve retail outlets in a large tricounty metropolitan area. The service center uses three delivery Irucks and fifteen service vehickes for delivering gowis and for making service calls rebated to larke appliances and electronic euipment. Customers typically bring small appliances and clectronics to the service center for repair. At January 1, 2002, Selfers Service Center reported audited balances of 5720,060 and 5350,000 for T Trucks' and "Accumubted Depreciation-Trucks, respectively. The vehicles consisted of fve delivery trukks custing $72,000 each and fifteen service trucks costing 52,000 each. Accumulated depreciation was $200,000 for delivery trucks and $150,000 for service trucks The cumpany depreciates all trucks on a straight-line hasis, asing a six-year life and aero salvage valie. One hall year's depreciation is taken in the yeat of acyuisition and in the year of disposal. The company Jepreciates all trucks on a straighe-line hasis. irsing a six-year lile and zero salvage valie. One-half year's depreciation is taken in the year of acquisition and in the ycar of dispesail During 2002. the following transactions and journal entrics were completed by the company 2/2/02 Sold one delivery truck for $4,000. The truck was fully depreciated at 12/31/41 Cash 5.000 Truik 5000 3/1/02 Bushht one detivery truck for 581,000 Truck58+,00058i,000 3/15,02- Sold ork service truck for 57,000 . This truck was purchased 8/15/99 for $2+,000 and the accumblated depreciatiom. according to Selfer's subsidiary lechger, at the date of sale was 510,000 . a. Prepare an audit workpaper analyzing the following accounts - Trucks - Accumulated depreciation-truks - Depreciation expensc-trucks - Gain (loss) on disposal of trucks Start with the audited balances at the beginning of the year. Reflect the traasactions as they should have been recorded during 2002 to arrive at audited balances at the end of the year. Then compare these with the December 31,2002 client halances and record necessary audit adjustments. b. What are the audit objectives for purposes of this exercise? What audit procedures should be applied in mecting these objectives? c. Add audit legends. Explain them at the bottom of your workpaper, describing the procedures that you identified in (b) above