Hillsburg Hardware Overall Test of Interest Expense December 3 1, 2016 FIGURE 7-2 Schedule N-3 Prepared by TM Approved by Jw Hillsburg Hardware Co Overall Tost of Interest Exponse 12/31/16 Date y/05/17 V12/17 Expectation of recorded interest expense: Short-term loans Month end Balance s 5,900,000 6,368,000 6,824,000 7,536,000 5,208,000 3,748,000 2,800,000 2,490,000 2,092,000 1,708,000 5,062,000 4,180,000 $53,916,000 Rate 550% 5.50% 5.75% 5.75% 5.25% 5.50% 5.25% 5.50% 5.25% 5.50% S.75% Month Sept. Oct Nov 5.50% Dec. 66.00% Total Average Monthiy Balance and interest Rate (total+ 12) S 247,115 S 4,495,000 5.50% Long term loans Beginning balance Ending balance s26,520,000 24,120,000 $50640,000 850% $25,320,000 8.50% 2,152,200 Average Auditor espectation of interest expense 2,399,315 Recorded interest expense per general ledger 2,408642 Difference over (under) expectation 9 327 Conclusion: Interest expense apprars fairly stated as recorded amount is within 9,327 (4%) of expected amount Tickmark Logusd Monthly balances obtained from general ledger for each month Estimated based on exaination of several notes outstarding each month Agreed to prior year audit worpapers Apees with December 31, 206 general ledger and working trial balance. S Agees with permanent file schedule of long term debt si Hillsburg Hardware Overall Test of Interest Expense December 3 1, 2016 FIGURE 7-2 Schedule N-3 Prepared by TM Approved by Jw Hillsburg Hardware Co Overall Tost of Interest Exponse 12/31/16 Date y/05/17 V12/17 Expectation of recorded interest expense: Short-term loans Month end Balance s 5,900,000 6,368,000 6,824,000 7,536,000 5,208,000 3,748,000 2,800,000 2,490,000 2,092,000 1,708,000 5,062,000 4,180,000 $53,916,000 Rate 550% 5.50% 5.75% 5.75% 5.25% 5.50% 5.25% 5.50% 5.25% 5.50% S.75% Month Sept. Oct Nov 5.50% Dec. 66.00% Total Average Monthiy Balance and interest Rate (total+ 12) S 247,115 S 4,495,000 5.50% Long term loans Beginning balance Ending balance s26,520,000 24,120,000 $50640,000 850% $25,320,000 8.50% 2,152,200 Average Auditor espectation of interest expense 2,399,315 Recorded interest expense per general ledger 2,408642 Difference over (under) expectation 9 327 Conclusion: Interest expense apprars fairly stated as recorded amount is within 9,327 (4%) of expected amount Tickmark Logusd Monthly balances obtained from general ledger for each month Estimated based on exaination of several notes outstarding each month Agreed to prior year audit worpapers Apees with December 31, 206 general ledger and working trial balance. S Agees with permanent file schedule of long term debt si
