What happens when workers are laid off?

A common error the auditor may find during the audit of property, plant, and equipment is that the client neglected to make a jo

inna [77]

Answer:

In the current case, the CPA checked the initial adjusts of property, plant and gear during his first year of commitment. Presently during his subsequent year, he goes over certain things which may expect him to change his review systems.

Part 1.

At the point when the associate controller expressed that "they had such a large number of additional items lying around", the CPA would have realized that numerous additional printers and the scanners are there in the organization. As the organization isn't a misfortune making endeavor or scaling down, there is no purpose behind this to occur, other than that the organization has bought new printing and examining hardware.

Thus, numerous old printers and scanners have gotten out of date and now are lying around being pointless.

Additionally, as the CPA would have entered the customer office and had introductory conversations with the administration, before beginning of the review strategies, he would have seen the numerous scanners on every representative's work area, yet no printer. That also have cautioned the CPA with respect to the organization's difference in hardware use.

Part 2.

Presently, as the organization has bought numerous new gear, the review technique which can be included are:

Verify the physical gear with the solicitations being entered in the framework
The sensibility of the new buys
The treatment of the old gear, regardless of whether disposed of and discounted from the books or not
The cost booked in the benefit and misfortune account, for the gear lying around the workplace, yet with no utilization and scrap esteem left
As the organization has rolled out numerous improvements with the benefits of the organization, physical check of the advantages ought to be certainly considered in the review program

Part 3.

The cost in regards to the new gear in the financials would have furnished the CPA with the data that organization has brought about costs on the new hardware.

The expanded devaluation cost would have raised the doubt.

The conversations with the administration about the general working of the organization and the advancement of the organization would have featured this point in the discussion.

Other than this, irregular voyage through the workplace and conversations with not many of the representatives would have featured this act of the organization to the examiner.

6 0

4 years ago

(Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to Walsh, Inc. on January

Artist 52 [7]

<u>Solution and Explanation:</u>

Calculation of Minimum lease annual payments from (MLP)

Year MLP from lessor Present value Present valur of

point of view factor 8% cash flows

1 $4,703 $1 /(1.08)=0925$ $4,350.28

2 $4,703 $1 /(1.08)^{\wedge} 2=0.857$ $4,030.47

3 $4,703 $1 /(1.08)^{\wedge} 3=0.793$ $3,729.48

4 $4,703 $1 /(1.08)^{\wedge} 4=0.735$ $3,456.71

5 $4,703 $1 /(1.08)^{\wedge} 5=0.680$ $3,198.04

Total of Minimum

lease Payments $23,515 $ 18,764.97

Add

Unguaranteed

residual value(ugrv) 4000 $1 /(1.08)^{\wedge 5}=0.680$ $2,720.00

Asset to be recorded

in the books of lessor

(sum of mlp +ugrv) $27,515 $ 21,484.97

Here

Gross Investment=$27515

Lease receivable recorded in in the books of lessor(Phelps)(Mimum lease payments + Unguaranteed residual )value = $21484 $21,484

Walsh (lessee) shoiuld be recorded the amount of present value of minimum lease payments + Guaranteed Residual value=$18764.97 as asset and liabilty

b) In the books of phelps (lessor)

2017.01.01 Lease Recievble from walsh ….Dr $21,484

to Asset $21,484

(Being Lease receivable recorded )

In the books of Walsh (lessee)

2017.01.01 Asset ac ……………Dr $18,764

to Lease Liabilty(Lessor) $18,764

(Being the asset and liabilty recorded )

2017.12.31 Depreciation ……Dr 3752

to Asset 3752

(Beint Depreciation recorded charged during the year recorded 18764/5 provided for 5 years)

Here annual payment started from the at the beginning of year i.e annual lease payments start from 01.01.2018.

c) If expected residual value of $4000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books. But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $4000 $18764+2720=21484

d) If expected residual value of $3000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $3000 $18764+$2040=$20804

5 0

3 years ago

Wansley Enterprises is considering a new project. The company has a beta of 1.0, and its sales and profits are positively correl

Bezzdna [24]

Answer:

A. The proposed new project would have more stand-alone risk than the firm's typical project.

Explanation:

4 0

3 years ago

True or false A coupon is the stated interest on a corporate, municipal, or government bond.

dem82 [27]

This statement is true. A coupon rate is a stated interest on a corporate, municipal, or government bond. A bond is a contract to repay the borrowed or owed money and all of its interests for any future investments.

8 0

3 years ago

When the price of good A is $50, the quantity demanded of good A is 500 units. When the price of good A rises to $70, the quanti

olga55 [171]

Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A

Explanation:

The following can be deduced form the question:

P1 = $50

P2 = $70

Q1 = 500 units

Q2 = 400 units

Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100

Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100

% change in quantity = (400 - 500)/(400 + 500)/2 × 100

= -100/450 × 100

= -22.22%

% change on price = (70 - 50)/(70 + 50)/2 × 100

= 20/60 × 100

= 33

Price elasticity of demand = % change in quantity / % change on price

= -22.22 / 33

= -0.67

This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.

Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A

7 0

3 years ago