Golden Limited Case Study

1878 Words 8 Pages
Register to read the introduction… The truck has a useful life of 3 years and a salvage value of $3,000.

245,000

.

Further adjustments and information:

24,500

Accumulated Depreciation - Building i-v-e ry Truck***

Collections: Accounts Receivable $21,000; Interest on Bonds $6,000; Cash Sales

$95,000
.

50,000

Allcw--ance for Doubtful Debts

110
110

Credit

48,000

1102
1103

,

Debit

18,000

i. Bad debt expense is estimated at 1% of credit sales
10,000

ccumulated Depreciation - Delivew Truck

ii. Record straight-line depreciation on the building and trucks

8,000

ounts Payable

iii. Accrued interest on investment in bonds is $1,500

31,000

r :es Payable

iv. Income tax expense for 2007 is $f17,065. Tax is not due until 2008

Wages Payable
15,000

Income Taxes Payable

Required

285,000

linary Shares (Par Value: $1)

40,600

:ained Earnings
Sales

a) Prepare journals for each of the transactions above of Golden Limited
b) Prepare a trial balance after posting the journal entries

Interest Revenue

c) Prepare income statement and balance sheet

OF ÿrating
…show more content…
Audit program.

B. Communication with predecessor auditor
C. Auditor's engagement letter/Audit Notification.

.

There are three main stages of a typical audit engagement:

D. Report on Reportable Conditions/Management Letter
E. Auditor's communication with the audit committee.
1. Review documentation on the Mandate and Delegation of Authority for the

a. Name the three stages in chronological order

B. Describe three critical procedures that must be performed during the first stage

Mission.
• and the sources of information for those procedures.

2. For investments in nonpublic entities, compare carrying value to information in the most recently available audited financial statements.
3. Management did not correct certain misstatements because it considered them

C.

What are the key responsibilities of the assisting auditor during the second

stage?

immaterial to the financial statements.
4. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses.

5. The scope of the audit was financial and operational in nature and covered the period from 1999 through 2004.
6. We would be grateful if your. offices could communicate the above

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