U 9 w Oceanview Marine Company Determination of Performance Materiality December 31, 2018 2018 Unadjusted Performance Account Name Trial Balance Materiality Cash 1,320,096 20,000 Accounts receivable 1,762,682 Allowance for doubtful accounts 116,636 CR Inventory 13,524,349 50,000 Prepaid expenses 17.720 2,000 Deposits 7,916 1,000 Land 100,000 -0- Automobiles 42,772 Equipment 134,919 3,000 Office equipment Building 49,028 1,000 525,840 10,000 Accumulated depreciation 256,042 CR 5,000 Accounts payable 1,750,831 CR Accrued liabilities 257,800 CR Federal income taxes payable 35,284 CR 5,000 Notes payable-bank 5,100,000 CR Current portion of long-term debt 5,642 CR 1,000 Long-term debt 409,824 CR 10,000 Common stock 10,000 CR 1.000 Additional paid-in capital 2,500,000 CR 10,000 Combined performance materiality (total of column 3) Preliminary judgment about materiality (from w/p 5-3-a) Multiply preliminary judgment by 31 Total (combined performance materiality must be less than this total) x 3.00 5-4 Current workpapers-audit planning + Page 31