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You are engaged to perform an audit of the Glordant Corporation for the year ended December 31, 2018. You have decided to perform the following

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You are engaged to perform an audit of the Glordant Corporation for the year ended December 31, 2018. You have decided to perform the following cutoff test for payables and accruals. Select all items greater than $25,000 for two business days before and after year- end from the purchases joumal and ensure that all transactions are recorded in the proper period. During your firm's observation of Glordani's physical Inventory you obtained the following cutoff Information: the last receiving report number in 2018 was 49.745. Your audit work identified the following items for further investigation: Selections from the December 2018 Purchase Journal Date Vendor Name Anount Explanation 12/30 Allen Chen $ 29,875 Chemicals purchased for manufacturing process. b. Khan Consulting $ 45,eee Payment for consulting services for the three-month period beginning December 1, 2018. The 545, eee was charged to consulting expenses. 12/31 49, 744 Goff Materials $205,000 Raw materials used in the manufacturing process. a. RRIE 49, 742 none 12/31 d. Date 1/01 1/02 1/02 RR 49,746 49,743 norie Selections from the January 2019 Purchase Journal Vendor Name Amount Explanation Temper Trucks $ 75,985 Purchase of a new forklift. Pack Products $ 42,880 Paper products used in manufacturing process. Telecom Inc. $ 32,450 December 2011 telephone bill. + Required: For each of the six Items provided in the table above, consider whether there is evidence of proper cutoff of payables and accruals (1.e., the transaction is recorded in the proper period). If the item is not properly recorded, prepare the necessary adjusting entries at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.)

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