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You have been engaged to review the financial statements of Culver Corporation. In the course of your examination, you conclude that the bookkeeper hired during
You have been engaged to review the financial statements of Culver Corporation. In the course of your examination, you conclude that
the bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as follows.
Yearend wages payable as of the end of the current year of $ were not recorded because the bookkeeper thought that
"they were immaterial."
Accrued vacation pay for the current year of $ was not recorded because the bookkeeper "never heard that you had to
do it
Insurance for a month period purchased on November of this year was charged to insurance expense in the amount of
$ because "the amount of the check is about the same every year."
Reported sales revenue for the year is $ This includes all sales taxes collected for the year. The sales tax rate is
Because the sales tax is forwarded to the state's Department of Revenue, the Sales Tax Expense account is debited. The
bookkeeper thought that "the sales tax is a selling expense." At the end of the current year, the balance in the Sales Tax
Expense account is $
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