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TL Taraman Limbu Taraman Limbu (30357505) BUACC 5935 - Word Tell me what you want to do Review View Help References Mailings Layout 1 gh AaBbcd AaBbcc AaBbc dobbet ABCD AAB Book Title Emphasis Heading 2 Intense E Intense Intens Styles A AE ** AW 3D Paragraph Font Question 4 (15+5 = 20 marks) In your audit of Payton Industries for calendar year 20X0, you found some issues that you believe represent possible adjustments to the company's books. In addition, there are others issues that need to be addressed All issues are listed below 1. On 23 December 20X0, Payton Lld declared a bonus issue of 1000 shares with a par value of $100 000 of its ordinary shares, payable 2 February 20x1 to the ordinary shareholders on record as at 30 December 20X0 2. Several debit memos that were processed and recorded after year-end relate to purchases and accounts payable for 20X0. These total $30 000 3. Inventory cut off tests indicate that $35 000 of inventory received on 30 December 20X0 was recorded as purchases and accounts payable in 20X1. These items were included in the inventory count at year-end and were therefore included in ending inventory 4. Electricity and other utilities invoices received after the cut-off date $37 000 5. The company has not established a reserve for obsolescence of inventories. Your tests indicate that such a $33 000 reserve is appropriate under the circumstances 6. Your review of the allowance for doubtful accounts indicates that it is understated by $42 000 7. The company was concerned about the possibility of a liability, amountina O e