In en out of the Mishown Corporation as of December 31, 2016. The following situations exist. No entries have been made in the accounting records in relation to these ona Click toont view the station) Requirements Defne contingent ability t. Describe the audit procedures you would use to learn about each of the sun ished . Describe the nature of the adusting entries or disclosure any you would make for each of these situation. WICPA adapted.) Requirementa. Defne contingent ability A contingent by a potential future obligation to an outside party for an unknown amount resulting from activities at have already taken place Requirement or the oil procedures you would use to learn about each of the stations isted Begin tyttying all of the aud procedures you would use to leam about situation 1. Select the choices of poly) DA Dispecifically, any related party section with management and include information in the frontation . Analyse legal expense to the period under de and review and statements of in confor indications of contingentes De Review records for unusual journal entre made to the equity cours Common lock and Roland Gambit to year-end D. Confem details of stock transactions with register and eagent HE. Review the minutes of director and stockholders meetings for indication of wsche contigo MF Discuss the existence and nature of possible content with management and lange withon representations D. Review financiament of all, and where red party transaction are pront, make directions management, and perhaps were records of the OH Review current and previous years' en revenue sur reports for home taxe Orain letters from all my performing vices for the chest to the value of pending on or other continguts of the procedures you to leam about ton choice CIA Owners from mores performing es forment as to the opening an Cant des of won with and forget Anstrenwereni te nav under www www www In an audit of the Midtown Corporation as of December 31, 2016, the following studions estat. No entries have been made in the accounting records in relation to these torna (click the icon to view the situations Requirements a. Defina contingent abaty b. Describe the audit procedures you would use to learn about each of the shield c. Describe the nature of the adjusting tries or sure, if any, you woul More info Requirement. Define contingent A contingent latity is a potential tuture obligation to an outside party for a 1. During the year 2016, the Milton Corporation was named as a defendant in Requirement. Describe the procedures you would use to learn abo sul for damages by the Dogtown Company for breach of contract. An adverse decision to the Moon Corporation was rendered and the Dogtown Begin by identifying to the sud procedures you would use to learn abou Company was www $7,500,000 damages. At the time of the audit the case was under pelto a higher court CIA Difically, and party transactions with managente 2 on December 23, 2016. the Midtown Corporation decored a common stock WB. Analye legal expense for the period under de and review invoice dividend of 6.000 shares with a per values of $4.200,000 of the common stock payati Feny 2. 2017, to the common stockholders of mcord December C. Reformas made toy 30. 2016 BD Cantem of Mockansactions with regar and transferred The Midtown Corporation has guaranteed the payment of interest on to your more info Nou Company, ale Ondre HL Review the minutes of director and Mockrooming for no bons Nou Canay want to 30.000.000 were to Mecus the wine and are posibile contabiles 10% per annum dusun and December of each yo. Tu Boda were DO Reviews and what party parents have been rely that company will the oroption of the payment to December 1, 2016. The Midtown Corporate Pat will pay the records of the OH Review current and previous year mal revenue agent reports dolated interest to the bondhold on Jan 16, 2017 Cotantomen from a major atiomey performing legat Vice for cently of audit prodares you would use tornou son 2 Phat Done BA Oestron i majores performing a services for the cont Conform details of stock reactions with regular and transferent no Antiw the answimwis Artists Choose from one any number in the input fields and then continue to next question man nudit of the Midtown Corporation as of December 31, 2016. The following stations est. No entries have been made in the accounting records in relation to these tona Click the loon to view the situations) Requirements a. Defina contingent liability Describe the audit procedures you would use to learn about each of the stations inted c. Describe the nature of the adjusting entries or disclosure, if any, you would make for each of these situation. (AICPA adapted antity of the audit procedures you would use to learn about station 2. Select the choices that apply) DA. Ootan letters from all major atomes performing services for the chest as to the status of pending oution or other contingent tables B. Confirm details of stock transactions with registrar and transfer agent DC. Analyze legal expense for the period under audit and review invoices and statements of legal counsel for indications of contingent abili D. Review the minutes of directors and stockholders' meetings for indication of lawsuits or offer contigo DL Review current and previous yearsintomal revenue gent reports for income tax settlements 5 Review financial statements of all, and where related party transactions are apparent make direct inquiries of all management and perhaps evenemine recorda cesary B. Discuss the existence and nature of possible contingent bites with management and obtain appropriate wins DH Discuss, specifically, any related party transactions with management and include information in or of representation DL Review records for unusual joumal entries made to the equity accounts (Common stock and Retained earning sugent to your end I Identify all of the audit procedures you would use to learn about station 3 (to choices that apply) CA Review tranola statements of all, and where related party transactions were made Grect muren outlet managers, and perhaps every Discuss, specially any related party transactions with management and include formation in the war of representation Contem details of stock transactions with registrar and transfer agent CD. Review Current and previous years internal revenue agent reports for me to DE Discuss the existence and nature of posible continguts with management and obtain proprio presentation O Review records for unusual mal entries made to the equity common stock and Redentowand OG Otors from a major womes performing services for these woning in her contingentes rust of the Midtown Corporation as of December 31, 2018, the following stations exist. No entries have been made in the accounting records in relation to these tomu the con to view to in Requirements Define contingent by b. Diserbe tre et procedures you would use to learn about each of the situationed c. Descnbe the nature of the adjusting entries or disclosure. If any you would make for each of these situation CPA adapted It all of the audit procedures you would use to leam about station 3 Beledoches that oply DA Row francial statement of atto, and where rented party transactions are part make direct inquiries of affiliate management, un petit even came records of use De Discuss spefwyaryoted party transactions with management and include information in the water representi C. Confidels of stock transactions with registrand transfer agent Go Rewcurrent and previous year revenue agent reports for comments O Discuss the existence and nature of possible contents with management and obtain appropriate with pretion DF Review records for unusual maltres made to the soully account Common ock and Retained coming sentyarend Obtinetters from all major womey performing in service for the clients to the spending ligion or other contingent OH Review the minutes of directors and stockholders' meetings for indication of mus other contes Di Anwyregel expense for the period under de andre invoices and serta of legal counsel for indications of tontingent Requirement. Des entre of their entrar coure. If any you would make for each of these shore Bagn By were the propriate of the Queen or conta do Automation tool of Mrown hay 7.500.000 mentor me that mood that con Corporation will need to pay December 2018 dated informatlari Financial Statement Tree 2 Now recording to this em 2016. record de la promote the all of the Midtown Corporation as of December 31, 2016, the following stutions wint. No entries have been made in de accounting records in relation to these terms. Click the contestations Requirements a. Define contingent Describe the Bodil procedures you would use to learn about each of the wine shed . Describe the nature of the adjusting entries or disclosure. If any, you would make for each of these won (AICPA adapted) Requiremente. Describe the nature of the acusting entries or discount any, you would make for each of these stone Begin by eding the appropriate nature of the adjusting entries or any meded for each shton (Arumerustion 1, the hood of Midtown having to pay the 17.500.000 de la manobio For method that Midlown Corporation will need to pay the December 1, 2015 autodestis probabile) Station Financial Statement Treatment Now to any fingerstyl bych slution of December 31, 2016. fecords for the credit cute on from any oumleries Select Montry on the first of the Armenia doing is not edin ve other alle blank.) Begin by recording any busting entry red by station 1 Jumaltry One Account Debit Cred O 31 Noord any wond adjusting entry odbyn 2 Journal Entry Choose from any liat or number in the input ids and then continue to the questo In an audit of the Midtown Corporation as of December 31, 2016, the following situations exist. No entries have been made in the accounting records in relation to these items. Click the icon to view the situations.) Requirements a. Define contingent liability b. Describe the audit procedures you would use to learn about each of the situations listed c. Describe the nature of the adjusting entries or discosure, if any, you would make for each of those situations (AICPA adapted) Next, record any year end adjusting entry required by situation 2 Journal Entry Accounts Date Debit Credit Dec 31 Now record any year-end adjusting entry required by situation 3 Journal Entry Date Accounts Ded 31 Debit Credit In an audit of the Moxy Corporation as of December 31, 2016, the following thuations exist. No entries have been made in the accounting records in relation to these terms Click the icon to view the station Requirements a. Define contingent liability b. Describe the audit procedures you would use to learn about each of the stations isted. c. Descnbe the nature of the adjusting entries or disclosure. If any you would make for each of these situations. (AICPA adapted) Requirement a. Define contingent ability A contingent kabaty i Requirement b. Describe the audit procedures you would use to learn about each of the situations listed Begin by identifying all of the aut procedures you would use to leam about station 1. (Select the choices that apply) CA Confirm details of stock transactions with registrar and transfer agent B. Review records for unusual joumal entries made to the equity accounts (Common stock and Retained earnings) subsequent to your end. c. Analyze lege expense for the period under aus and review invoices and statements of legal counsel for indications of contingent liables D. Discuss the existence and nature of possible contingent files with management and obtain appropriate written representation DE Review financial statements of attitate, and where related pary transactions are apparent, make direct inquiries of lite management, and perhaps even examine records of artiste Freesay F Review the minutes of directors and stockholders meetings for indication of wis or other contingencies 0 Discus specifically any related party transactions with management and indude information in letter of representation BH Review Current and previous year'a revenue agent reports for come taxe DL Obtain letters from all major attomes performing legal services for the client as to the status of pending lition or other contingere lates Identity at of the audit procedures you would use to learn about station 2 (Select the choices that ply) mg situations exist. No entries have been made in the accounting records in relation to these items. es oul * More Info aboy bout ager accou woice 1. During the year 2016, the Moxy Corporation was named as a defendant in a suit for damages by the Doddle Company for breach of contract. An adverse decision to the Moxy Corporation was rendered and the Doddle Company was awarded $1,200,000 damages. At the time of the audit, the case was under appeal to a higher court. 1 2. On December 23, 2016, the Moxy Corporation declared a common stock dividend of 9,000 shares with a par value of $6,300,000 of its common stock, payable February 2, 2017, to the common stockholders of record December 30, 2016. 3. The Moxy Corporation has guaranteed the payment of interest on the 10-year, first mortgage bonds of the Needle Company, an affiliate. Outstanding bonds of the Needle Company amount to $7,000,000 with interest payable at 8% per annum, due June 1 and December 1 of each year. The bonds were issued by the Needle Company on December 1, 2014, and all interest payments have been met by that company with the exception of the payment due December 1, 2016. The Moxy Corporation states that it will pay the defaulted interest to the bondholders on January 15, 2017. es wil Ine rec y tran or indid geme Sorts fo es for Print Done ation 2 lities with management and obtain anpropriate written representations then continue to the next question. In an audit of the Moxy Corporation as of December 31, 2016, the following situations exist. No entries have been made in the accounting records in relation to these items. (click the loon to view the situations.) Requirements a. Define contingent liability b. Describe the audit procedures you would use to learn about each of the situations listed, c. Describe the nature of the adjusting entries or disclosure, if any, you would make for each of these situations. (AICPA adapted) Requirement a. Define contingent liability.. A contingent habity is Requirement b. Descr a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place. Begin by identifying all a potential legal claim against a client where the condition for a claim exists but no claim has been filed DA Confirm details an agreement that the entity wil hold to a foed set of conditions, regardless of what happens to profits or to the economy. B. Review records an event that occurred after the balance sheet date that affects the fair presentation or disclosure of the statements being audited C. Analyze legale ID. Discuss the existence and nature of possible contingent liabilities with management and obtain appropriate written representations. E. Review financial statements of affiliate, and where related party transactions are apparent make direct inquiries of affiliate management, and perhaps even examine to F. Review the minutes of directors and stockholders' meetings for indication of lawsuits or other contingencies, G. Discuss, specifically, any related party transactions with management and include information in letter of representation H. Review current and previous years' internal revenue agent reports for income tax settlements. OL Obtain letters from all major attorneys performing legal services for the client as to the status of pending litigation or other contingent liabides Identity at of the audit procedures you would use to learn about situation 2. (Select the 6 choices that apply.) HAD the mistance and nature of an antingent liabilities with manament And ohtin Ate written resentation In en out of the Mishown Corporation as of December 31, 2016. The following situations exist. No entries have been made in the accounting records in relation to these ona Click toont view the station) Requirements Defne contingent ability t. Describe the audit procedures you would use to learn about each of the sun ished . Describe the nature of the adusting entries or disclosure any you would make for each of these situation. WICPA adapted.) Requirementa. Defne contingent ability A contingent by a potential future obligation to an outside party for an unknown amount resulting from activities at have already taken place Requirement or the oil procedures you would use to learn about each of the stations isted Begin tyttying all of the aud procedures you would use to leam about situation 1. Select the choices of poly) DA Dispecifically, any related party section with management and include information in the frontation . Analyse legal expense to the period under de and review and statements of in confor indications of contingentes De Review records for unusual journal entre made to the equity cours Common lock and Roland Gambit to year-end D. Confem details of stock transactions with register and eagent HE. Review the minutes of director and stockholders meetings for indication of wsche contigo MF Discuss the existence and nature of possible content with management and lange withon representations D. Review financiament of all, and where red party transaction are pront, make directions management, and perhaps were records of the OH Review current and previous years' en revenue sur reports for home taxe Orain letters from all my performing vices for the chest to the value of pending on or other continguts of the procedures you to leam about ton choice CIA Owners from mores performing es forment as to the opening an Cant des of won with and forget Anstrenwereni te nav under www www www In an audit of the Midtown Corporation as of December 31, 2016, the following studions estat. No entries have been made in the accounting records in relation to these torna (click the icon to view the situations Requirements a. Defina contingent abaty b. Describe the audit procedures you would use to learn about each of the shield c. Describe the nature of the adjusting tries or sure, if any, you woul More info Requirement. Define contingent A contingent latity is a potential tuture obligation to an outside party for a 1. During the year 2016, the Milton Corporation was named as a defendant in Requirement. Describe the procedures you would use to learn abo sul for damages by the Dogtown Company for breach of contract. An adverse decision to the Moon Corporation was rendered and the Dogtown Begin by identifying to the sud procedures you would use to learn abou Company was www $7,500,000 damages. At the time of the audit the case was under pelto a higher court CIA Difically, and party transactions with managente 2 on December 23, 2016. the Midtown Corporation decored a common stock WB. Analye legal expense for the period under de and review invoice dividend of 6.000 shares with a per values of $4.200,000 of the common stock payati Feny 2. 2017, to the common stockholders of mcord December C. Reformas made toy 30. 2016 BD Cantem of Mockansactions with regar and transferred The Midtown Corporation has guaranteed the payment of interest on to your more info Nou Company, ale Ondre HL Review the minutes of director and Mockrooming for no bons Nou Canay want to 30.000.000 were to Mecus the wine and are posibile contabiles 10% per annum dusun and December of each yo. Tu Boda were DO Reviews and what party parents have been rely that company will the oroption of the payment to December 1, 2016. The Midtown Corporate Pat will pay the records of the OH Review current and previous year mal revenue agent reports dolated interest to the bondhold on Jan 16, 2017 Cotantomen from a major atiomey performing legat Vice for cently of audit prodares you would use tornou son 2 Phat Done BA Oestron i majores performing a services for the cont Conform details of stock reactions with regular and transferent no Antiw the answimwis Artists Choose from one any number in the input fields and then continue to next question man nudit of the Midtown Corporation as of December 31, 2016. The following stations est. No entries have been made in the accounting records in relation to these tona Click the loon to view the situations) Requirements a. Defina contingent liability Describe the audit procedures you would use to learn about each of the stations inted c. Describe the nature of the adjusting entries or disclosure, if any, you would make for each of these situation. (AICPA adapted antity of the audit procedures you would use to learn about station 2. Select the choices that apply) DA. Ootan letters from all major atomes performing services for the chest as to the status of pending oution or other contingent tables B. Confirm details of stock transactions with registrar and transfer agent DC. Analyze legal expense for the period under audit and review invoices and statements of legal counsel for indications of contingent abili D. Review the minutes of directors and stockholders' meetings for indication of lawsuits or offer contigo DL Review current and previous yearsintomal revenue gent reports for income tax settlements 5 Review financial statements of all, and where related party transactions are apparent make direct inquiries of all management and perhaps evenemine recorda cesary B. Discuss the existence and nature of possible contingent bites with management and obtain appropriate wins DH Discuss, specifically, any related party transactions with management and include information in or of representation DL Review records for unusual joumal entries made to the equity accounts (Common stock and Retained earning sugent to your end I Identify all of the audit procedures you would use to learn about station 3 (to choices that apply) CA Review tranola statements of all, and where related party transactions were made Grect muren outlet managers, and perhaps every Discuss, specially any related party transactions with management and include formation in the war of representation Contem details of stock transactions with registrar and transfer agent CD. Review Current and previous years internal revenue agent reports for me to DE Discuss the existence and nature of posible continguts with management and obtain proprio presentation O Review records for unusual mal entries made to the equity common stock and Redentowand OG Otors from a major womes performing services for these woning in her contingentes rust of the Midtown Corporation as of December 31, 2018, the following stations exist. No entries have been made in the accounting records in relation to these tomu the con to view to in Requirements Define contingent by b. Diserbe tre et procedures you would use to learn about each of the situationed c. Descnbe the nature of the adjusting entries or disclosure. If any you would make for each of these situation CPA adapted It all of the audit procedures you would use to leam about station 3 Beledoches that oply DA Row francial statement of atto, and where rented party transactions are part make direct inquiries of affiliate management, un petit even came records of use De Discuss spefwyaryoted party transactions with management and include information in the water representi C. Confidels of stock transactions with registrand transfer agent Go Rewcurrent and previous year revenue agent reports for comments O Discuss the existence and nature of possible contents with management and obtain appropriate with pretion DF Review records for unusual maltres made to the soully account Common ock and Retained coming sentyarend Obtinetters from all major womey performing in service for the clients to the spending ligion or other contingent OH Review the minutes of directors and stockholders' meetings for indication of mus other contes Di Anwyregel expense for the period under de andre invoices and serta of legal counsel for indications of tontingent Requirement. Des entre of their entrar coure. If any you would make for each of these shore Bagn By were the propriate of the Queen or conta do Automation tool of Mrown hay 7.500.000 mentor me that mood that con Corporation will need to pay December 2018 dated informatlari Financial Statement Tree 2 Now recording to this em 2016. record de la promote the all of the Midtown Corporation as of December 31, 2016, the following stutions wint. No entries have been made in de accounting records in relation to these terms. Click the contestations Requirements a. Define contingent Describe the Bodil procedures you would use to learn about each of the wine shed . Describe the nature of the adjusting entries or disclosure. If any, you would make for each of these won (AICPA adapted) Requiremente. Describe the nature of the acusting entries or discount any, you would make for each of these stone Begin by eding the appropriate nature of the adjusting entries or any meded for each shton (Arumerustion 1, the hood of Midtown having to pay the 17.500.000 de la manobio For method that Midlown Corporation will need to pay the December 1, 2015 autodestis probabile) Station Financial Statement Treatment Now to any fingerstyl bych slution of December 31, 2016. fecords for the credit cute on from any oumleries Select Montry on the first of the Armenia doing is not edin ve other alle blank.) Begin by recording any busting entry red by station 1 Jumaltry One Account Debit Cred O 31 Noord any wond adjusting entry odbyn 2 Journal Entry Choose from any liat or number in the input ids and then continue to the questo In an audit of the Midtown Corporation as of December 31, 2016, the following situations exist. No entries have been made in the accounting records in relation to these items. Click the icon to view the situations.) Requirements a. Define contingent liability b. Describe the audit procedures you would use to learn about each of the situations listed c. Describe the nature of the adjusting entries or discosure, if any, you would make for each of those situations (AICPA adapted) Next, record any year end adjusting entry required by situation 2 Journal Entry Accounts Date Debit Credit Dec 31 Now record any year-end adjusting entry required by situation 3 Journal Entry Date Accounts Ded 31 Debit Credit In an audit of the Moxy Corporation as of December 31, 2016, the following thuations exist. No entries have been made in the accounting records in relation to these terms Click the icon to view the station Requirements a. Define contingent liability b. Describe the audit procedures you would use to learn about each of the stations isted. c. Descnbe the nature of the adjusting entries or disclosure. If any you would make for each of these situations. (AICPA adapted) Requirement a. Define contingent ability A contingent kabaty i Requirement b. Describe the audit procedures you would use to learn about each of the situations listed Begin by identifying all of the aut procedures you would use to leam about station 1. (Select the choices that apply) CA Confirm details of stock transactions with registrar and transfer agent B. Review records for unusual joumal entries made to the equity accounts (Common stock and Retained earnings) subsequent to your end. c. Analyze lege expense for the period under aus and review invoices and statements of legal counsel for indications of contingent liables D. Discuss the existence and nature of possible contingent files with management and obtain appropriate written representation DE Review financial statements of attitate, and where related pary transactions are apparent, make direct inquiries of lite management, and perhaps even examine records of artiste Freesay F Review the minutes of directors and stockholders meetings for indication of wis or other contingencies 0 Discus specifically any related party transactions with management and indude information in letter of representation BH Review Current and previous year'a revenue agent reports for come taxe DL Obtain letters from all major attomes performing legal services for the client as to the status of pending lition or other contingere lates Identity at of the audit procedures you would use to learn about station 2 (Select the choices that ply) mg situations exist. No entries have been made in the accounting records in relation to these items. es oul * More Info aboy bout ager accou woice 1. During the year 2016, the Moxy Corporation was named as a defendant in a suit for damages by the Doddle Company for breach of contract. An adverse decision to the Moxy Corporation was rendered and the Doddle Company was awarded $1,200,000 damages. At the time of the audit, the case was under appeal to a higher court. 1 2. On December 23, 2016, the Moxy Corporation declared a common stock dividend of 9,000 shares with a par value of $6,300,000 of its common stock, payable February 2, 2017, to the common stockholders of record December 30, 2016. 3. The Moxy Corporation has guaranteed the payment of interest on the 10-year, first mortgage bonds of the Needle Company, an affiliate. Outstanding bonds of the Needle Company amount to $7,000,000 with interest payable at 8% per annum, due June 1 and December 1 of each year. The bonds were issued by the Needle Company on December 1, 2014, and all interest payments have been met by that company with the exception of the payment due December 1, 2016. The Moxy Corporation states that it will pay the defaulted interest to the bondholders on January 15, 2017. es wil Ine rec y tran or indid geme Sorts fo es for Print Done ation 2 lities with management and obtain anpropriate written representations then continue to the next question. In an audit of the Moxy Corporation as of December 31, 2016, the following situations exist. No entries have been made in the accounting records in relation to these items. (click the loon to view the situations.) Requirements a. Define contingent liability b. Describe the audit procedures you would use to learn about each of the situations listed, c. Describe the nature of the adjusting entries or disclosure, if any, you would make for each of these situations. (AICPA adapted) Requirement a. Define contingent liability.. A contingent habity is Requirement b. Descr a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place. Begin by identifying all a potential legal claim against a client where the condition for a claim exists but no claim has been filed DA Confirm details an agreement that the entity wil hold to a foed set of conditions, regardless of what happens to profits or to the economy. B. Review records an event that occurred after the balance sheet date that affects the fair presentation or disclosure of the statements being audited C. Analyze legale ID. Discuss the existence and nature of possible contingent liabilities with management and obtain appropriate written representations. E. Review financial statements of affiliate, and where related party transactions are apparent make direct inquiries of affiliate management, and perhaps even examine to F. Review the minutes of directors and stockholders' meetings for indication of lawsuits or other contingencies, G. Discuss, specifically, any related party transactions with management and include information in letter of representation H. Review current and previous years' internal revenue agent reports for income tax settlements. OL Obtain letters from all major attorneys performing legal services for the client as to the status of pending litigation or other contingent liabides Identity at of the audit procedures you would use to learn about situation 2. (Select the 6 choices that apply.) HAD the mistance and nature of an antingent liabilities with manament And ohtin Ate written resentation