Oceanview Marine Company 5-4 Performance Materiality December 31, 2015 2015 Unadjusted Performance Account Name Trial Balance Materiality Cash 1,320,096 20,000 Accounts receivable 1,762,682 30,000 Allowance for doubtful accounts 116,636CR 6,000 Inventory 13,524,349 50,000 Prepaid expenses 17,720 2,000 Deposits 7,916 1,000 Land 100,000 -0- Automobiles 42,772 2,000 Equipment 134,919 3,000 Office equipment 49,028 1,000 Building 525,840 10,000 Accumulated depreciation 256,042CR 5,000 Accounts payable 1,750,831CR 30,000 Accrued liabilities 257,800CR 5,000 Federal income taxes payable 35,284CR 5,000 Notes payable - bank 5,100,000CR 25,000 Current portion of long-term debt 5,642CR 1,000 Long-term debt 409,824CR 10,000 Common stock 10,000CR 1,000 Additional paid-in capital 2,500,000CR 10,000 Combined performance materiality (total of column 3) 192,000 Preliminary judgment about materiality (from w/p 5-2-a) 73,000 Multiply preliminary judgment by 3 x 3.00 Total (combined performance materiality must be less than this total) 219,000