Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

II. Pretend you are an auditor (I know, I know, this is an amazing dream). Imagine that you are performing the 12/31/20 financial statement audit

image text in transcribed

II. Pretend you are an auditor (I know, I know, this is an amazing dream). Imagine that you are performing the 12/31/20 financial statement audit of Curly's Coffee and Vinyl Shop. During the substantive procedures, you discovered the situations listed below. If it is a misstatement, then you will need to communicate these to the client and request that they be fixed. In that case, write the correcting journal entry that the client should book to correct (all years with errors). Include date, accounts debited and credited, and amounts. If no correcting entry is needed, then write: no correcting entry necessary and provide a brief explanation. 1) You tested their annual listing sales invoices as of 12/31/20 and discovered that one of the credit customers placed an order for 250 Tom Waits albums on 12/31/20, but it was not shipped until 01/02/21. Curly's sold the albums for a total of $5,000 and it cost them $3,500. Curly's uses the perpetual inventory system, so your journal entry will need to correct sales revenue and inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Current Issues In Auditing

Authors: Michael J Sherer, W Stuart Turley

3rd Edition

ISBN: 1853963658, 978-1853963650

More Books

Students also viewed these Accounting questions

Question

What is meant by convergence of U.S. GAAP and IFRS?

Answered: 1 week ago