Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Search for Unrecorded Liabilities In conducting the audit procedures for the search for unrecorded liabilities, the materiality for this area was assessed by the auditors

Search for Unrecorded Liabilities In conducting the audit procedures for the search for unrecorded liabilities, the materiality for this area was assessed by the auditors at $6,000. Adjustments are only recorded for items equal to or exceeding materiality. The last day of fieldwork is February 1, 2020. The following items listed in the check register are not recorded in the accounts payable subsidiary ledger as of December 31, 2019, For the items reflected in the following check register determine if each potential liability is recorded in proper accounting period and also determine the amount that should be recorded as of year-end if any. If no action is required, enter $0. Each selection may be used once, more than once, or not at all. the Check Register Vendor Check # Check date Amount Nature of the expenses Replenish petty cash box Petty cash 1333 1/17/2020 $2,002 No action required [Select] No action required Adjustment required Received new forklift on 12/29/19, ordered on 12/18/19 [Select] Smith's Forklift Repairs 1334 1/22/2020 $11,000 [Select] Specialty goods ordered 12/20/19, delivered 12/31/19 Select Vendor D Check # Check date Amount Nature of the expenses Replenish petty cash box No action required Petty cash 1333 1/17/2020 $2,002 $0 Received new forklift on 12/29/19, ordered on 12/18/19 [Select] Smith's Forklift Repairs 1334. 1/22/2020 $11,000 [Select] Specialty goods ordered 12/20/19, delivered 12/31/19 [Select] Glenn's Glass Distribution Center 1335 1/23/2020 $12,230 [Select] Biweekly payroll (1/8/20-1/15/20) [Select] Payroll processing-Paychecks 1336 1/24/2020 $25,500 [Select] Trucking delivery fee for 12/4/19, and 1/3/20. The delivery fee is a monthly flat rate. [Select] Pitt Ohio Trucking Company 1337 1/10/2020 $45,000 [Select]

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

Introduction To Management Accounting

Authors: Charles T. Horngren, Gary Sundum, Gary L. Sundem

8th Edition

0134870751, 978-0134870755

More Books

Students also viewed these Accounting questions

Question

3. Define the attributions we use to explain behavior

Answered: 1 week ago