An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:

Units-of-activity is an appropriate depreciation method to use when

Flura [38]

Answer:

1. the productivity of the asset varies significantly from one period to another.

Explanation:

The units of production depends upon the following information:

1. Purchase value of an asset

2. Residual value

3. Total Estimated production

4. Production units of each year

The formula is given below:

= (Original cost - residual value) ÷ (estimated production bolts)

Now for the particular year, it would be

= Production units × depreciation per units

Hence, the appropriate option is 1.

5 0

3 years ago

The balance in Jahapp Inc.’s Cash account was $6,320 at April 30, 2019 before reconciliation. The April 30, 2019 balance shown i

Citrus2011 [14]

Answer:

$6,240.

Explanation:

Reconciliation Statement

Bank balance before reconciliation $4,590

Add: Deposits in transit 2,600

Less: Outstanding Checks (950)

Reconciled Bank Balance at April 30, 2019 $6,240

Cash balance before reconciliation $6,320

Add: Interest Revenue 60

Less: Bank service charges (140)

Reconciled Cash Balance at April 30, 2019 $6,240

<u>Notes</u>

- Deposit in transit and Outstanding checks are already recorded in company's books but not yet recorded with the bank because these checks might have reached bank after working hours. So, we have to update the bank's record.

- We have to update the cash balance with the information that is with the bank and has been provided to us at the period end. This include the interest revenue, already updated in the bank balance, and bank service charges.

7 0

4 years ago

On January 1, 2019, Everlasting, Inc. purchased Comet Corporation for $650,000. On that date the net assets of Comet had a book

DedPeter [7]

Answer:

A. $30,000

B. $250,000

C. $190,000

Explanation:

A. Calculation for What amount of 2019 Equity Income was recognized by Everlasting

Based on the information given the amount of 2019 Equity Income that was recognized by Everlasting will be $30,000 which is FIFO Inventory Undervalued amount.

B. Calculation for 2019 consolidated net income

Everlasting had income from its own operations of $220,000

Add FIFO Inventory --Undervalued, $30,000

Consolidated net income $250,000

C. Calculation for What amount of goodwill appeared on the consolidated balance sheet at December 31, 2019

Cost of Acquisition $650,000

Less: Book value $320,000

FIFO Inventory --Undervalued, $30,000

Land--Undervalued, $10,000

Equipment , $75,000

Patent, $25,000

Goodwill $190,000

8 0

3 years ago

he following information was taken from the 2018 financial statements of Jenny Gardner Corporation: Inventory, January 1, 2018 $

Volgvan

Answer:

$770,000

Explanation:

Purchase = Ending inventory +Cost of goods sold- Beginning inventory Purchased

= $240,000+$800,000-$180,000= $860,000

Cash paid to suppliers = Beginning AP+ Purchased -Ending AP Cash Payments

= $150,000+$860,000-$240,000 =

$770,000

Therefore the amount that Jenny Gardner should report as cash payments to suppliers is $770,000

4 0

3 years ago

Strategic alliances refer to a.Multinational firms that have as many different product variations, brand names, and advertising

pentagon [3]

Agreements between two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value.

Answer: Option D.

<u>Explanation:</u>

Strategic alliance is the alliance of two or more firms or companies with each other. This alliance has been formed by tow or more companies with each other in order to achieve common goals.

But this does not mean that these firms and companies will give up their independence in forming their alliance. The goals for forming this is to earn profits and get access to the market.

3 0

4 years ago