Answer:
a. Compare the details of cash receipts with journal entries.
b. Prepare a bank transfer schedule.
c. Confirm the terms of borrowing with the lenders agreement.
d. Send request to confirm the entity's account receivable balance.
e. Inspect payroll data of employees and cross check with the transaction recorded.
f. Obtain cut off bank statement to reconcile the transaction.
g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.
h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.
i. Inspect the payroll endorsements for similar handwriting.
Explanation:
Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.
Answer:
($ in million)
Dr Cash 81.6
Dr Discount on bonds payable 2.8
Cr Bonds payable80.0
Cr Equity-stock warrants outstanding 4.4
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
($ in million)
Dr Cash 81.6
(80,000,000 X 102/100 = $81.6 million)
Dr Discount on bonds payable 2.8
(80+4.4-81.6 = $ 2.8 million balancing figure)
Cr Bonds payable 80.0
Cr Equity-stock warrants outstanding 4.4
($5 × 11 warrants × 80,000 bonds= $4.4 million)
(Being To record issuance of bonds)
Answer:
7,953.57 units
Explanation:
Given that
Total number of days in a year = 360 days
Daily demand = 500 units
Standard deviation of daily demand = 100 units
Interval of order = 10 days
Lead time = 9 days
Service level = 98% its z value = 2.05
On hand inventory = 2,800
Based on the above information, the order quantity is
= Daily demand × (interval of order + lead time) + {z value × sqrt (Interval of order + lead time) × standard deviation units} - on hand inventory
= 500 units × (10 days + 9 days) + {2.05 × √19 × 100 units} - 2,800 units
= 9,500 units + 893.57 units - 2,800 units
= 7,953.57 units
We simply applied the above formula
In marketing, place refers to where a product is being sold. When it says "in these select stores," that's the place.
