Answered step by step
Verified Expert Solution
Question
1 Approved Answer
in conducting the audit procedures for the search for unrecorded liabilities, the tolerable misstatement for this area was assessed by the auditors at $6,000. Adjustments
in conducting the audit procedures for the search for unrecorded liabilities, the tolerable misstatement for this area was assessed by the auditors at $6,000. Adjustments are only recorded for items equal to or exceeding tolerable misstatement. For the items reflected in the following check register, which are not recorded in the accounts payable subsidiary ledger at December 31, 2019, determine whether each potential liability is recorded in the proper accounting period and also determine the amount that should be recorded, if any. Check Register Vendor Check # Check Date Amount Nature of the Expenses Daniel Breen, Esquire 1334 1/6/2020 $6,000 Corporate legal services for December 2019 Water World | 1335 1 /6/2020 53,000 Water coolers in office and Distributors, Inc. warehouse received 12/31/2019 Telephone Services, 1336 1/10/2020 $6,500 December 2019 telephone Inc and internet services Glenn's Glass 1337 1/23/2020 $12,000 Specialty goods ordered Distribution Center 12/20/2019, received 12/31/2019 Daniel Breen, Esquire $8,000 Corporate legal services for January 2020 2/6/202 Required in the table below, indicate whether an adjustment is required (Yes or No) and indicate the amount of the adjustment Check Adjustment Needed (Yes or No) Amount 1234 1035 1336 1337
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started