Hello,

Could you please help me with the following question:

You recently joined the internal auditing department of Marcus Clothing Corporation. As one of your first assignments, you are examining a balance sheet prepared by a staff accountant. Analyze the balance sheet for Judgement Case 3-5 located on pages 161?162 of your textbook. In the course of your examination you uncover the following information pertaining to the balance sheet.

1. The company rents its facilities. The land that appears in the statement is being held for future sale.
2. The note receivable is due in 2015. The balance of $53,000 includes $3,000 of accrued interest. The next interest payment is due in July 2014.
3. The note payable is due in installments of $20,000 per year. Interest on both the notes and bonds is payable annually.
4. The company?s investments consist of marketable equity securities of other corporations. Management does not intend to liquidate any investments in the coming year.

Identify and explain the deficiencies in the statement prepared by the company?s accountant. Include in your answer items that require additional disclosure, either on the face of the statement or in a note.

\fRunning head: SOLUTIONS FOR INTERMEDIATE ACCOUNTING Solutions for Intermediate Accounting Student's Name Institution 1 SOLUTIONS FOR INTERMEDIATE ACCOUNTING 2 Deficiencies in the Statement From the statement, it shows so many shortages which are in the record. The interest receivable should be recorded differently from note receivable, and all this should be data entry in the correct asset slot. All the investment made should also be differentiated from the current asset and be in place for all the investment and organization made (Stice, et al. 2013). In this case, the land which is for sale transactions should be in both the current asset on the investment entry. There was account receivable which was of $50 000, and this should be part of the long term asset in the balance sheet (Stice, et al.2013). Having an amount of $3000 which is the accrued interest this should be on the record in the current asset. Also the fact that $20000 is a note payable to someone else should be on a register of the current liability. The investment should not be revealed in the balance sheet as it contains marketable equity security of other corporations (Stice, et al. 2013). Also, the management is not willing to liquidate that investment in the future years. Items Which Require Disclosure The other things that need disclosure include account receivable in the balance sheet communication of the amount which was not in together. The patent should be on the balance sheet as the intangible asset. Also, equipment should be in the record of a balance sheet with the accumulated depreciation. The interest received on note payable and bond payable should also be included and disclosed in the statement if accounts. The amount received from the rent should also show on the report because they have given out the facility. The expenses which are for payment before they delivery are also supposed to be on the current assets of the statement (Stice, et al. 2013). SOLUTIONS FOR INTERMEDIATE ACCOUNTING 3 References Stice, E. K., & Stice, J. D. (2013). Intermediate accounting. Cengage Learning. Hi, I would kindly request that you would be sending assignments through my email; dominicchege92@gmail.com for convenience. Please do not let course hero know this since they will penalize me. Just send me a mail Running head: SOLUTIONS FOR INTERMEDIATE ACCOUNTING Solutions for Intermediate Accounting Student's Name Institution 1 SOLUTIONS FOR INTERMEDIATE ACCOUNTING 2 Deficiencies in the Statement From the statement, it shows so many shortages which are in the record. The interest receivable should be recorded differently from note receivable, and all this should be data entry in the correct asset slot. All the investment made should also be differentiated from the current asset and be in place for all the investment and organization made (Stice, et al. 2013). In this case, the land which is for sale transactions should be in both the current asset on the investment entry. There was account receivable which was of $50 000, and this should be part of the long term asset in the balance sheet (Stice, et al.2013). Having an amount of $3000 which is the accrued interest this should be on the record in the current asset. Also the fact that $20000 is a note payable to someone else should be on a register of the current liability. The investment should not be revealed in the balance sheet as it contains marketable equity security of other corporations (Stice, et al. 2013). Also, the management is not willing to liquidate that investment in the future years. Items Which Require Disclosure The other things that need disclosure include account receivable in the balance sheet communication of the amount which was not in together. The patent should be on the balance sheet as the intangible asset. Also, equipment should be in the record of a balance sheet with the accumulated depreciation. The interest received on note payable and bond payable should also be included and disclosed in the statement if accounts. The amount received from the rent should also show on the report because they have given out the facility. The expenses which are for payment before they delivery are also supposed to be on the current assets of the statement (Stice, et al. 2013). SOLUTIONS FOR INTERMEDIATE ACCOUNTING 3 References Stice, E. K., & Stice, J. D. (2013). Intermediate accounting. Cengage Learning. Hi, I would kindly request that you would be sending assignments through my email; dominicchege92@gmail.com for convenience. Please do not let course hero know this since they will penalize me. Just send me a mail