The accruals currently (that is, at the end of 1992) consist of $5 million of accrued taxes and $2,331,000 of accrued wages. The wages were all earned within the past two weeks, and no single employee is due more than $2,000. A long-term bank loan actually consists of two different loans: $5 million in straight unsecured debt, plus another $4,563,000 in loans that are subordinate to the $5 million loan. Weels Fargo, extended both the short-term loan and the senior long-term loan, while a competitor bank holds the subordinated note for $4,563,000. Mayo estimates that the administrative expenses for the trustee in bankruptcy would total $600,000 – this amount would be “taken off the top” in any liquidation or reorganization procedure.
C) $30,000. D) $12,000. 4. Rhoden Company wrote checks totaling $17,080 during October and $18,650 during November. $16,240 of these checks cleared the bank in October, and $18,220 cleared the bank in November.
(3) Employees involved in the credit-granting function are separated from the sales function. c. A sales invoice for $5,200 was computed correctly but, by mistake, was key-entered as $2,500 to the sales journal and to the accounts receivable master
ACC 291 Final Exam Question Answers Multiple Choice Question 86 An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a • debit to Bad Debt Expense for $4,500. • debit to Bad Debt Expense for $3,300. • credit to Allowance for Doubtful Accounts for $4,500. • debit to Allowance for Doubtful Accounts for $3,300.
VIK SHINGADIA CIS 210 Week 4:assignment 2 5/3/15 Mark Stone Use Cases As an intern software developer for a retail bank, you have been tasked with developing use cases to support the ATM service. Prepare a 5-6 page paper in which you: 1. Describe (in a one to two (1-2) page narrative) a use case, complete with typical and alternate courses, that documents the event of a bank customer withdrawing money from an ATM. 2. Illustrate the use case using Visio or a similar product.
• Note that adequate supporting documentation is attached. • Note turnaround time. 3. Other a. Selecting vendors from the expense test, complete the following steps: • Agree stated payment terms and vendor information to vendor master.
The clerk enters all the raw materials information directly into the inventory system. The data entered in the system includes the type of materials, the vendor, and the quantity. As the raw materials and sub-assemblies are taken out of inventory the staff completes an inventory usage form and then gives it to the clerk to enter into the inventory system. Once the team builds the sub-assemblies and final products, another inventory form is filled out and turned into the inventory clerk. When the sales department completes orders, they are then entered into the shipping and billing system.
Answer: Amount of discount = 70,000 * .03 = $2100. Net amount to borrow from bank = 70,000 – 2100 = $67,900. Interest cost of borrowing money at 6.5% = 67,900 * .065 * (60-10 days)/365 day in a year = $604.59. Amount saved by borrowing money to pay within time period to take advantage of discount = $2100-$604.59 = $1495.41 2) Determine the monthly payments for a $4000 loan at 5.5% add-on interest for one year. Answer: 4000 * .055 * 1 = 220.00 in interest.
6-19 a) 2 b) 3 c) 1 6-20 a) 1 b) 2 c) 1 6-27 a) The implied or expressed representations of management concerning classes of transactions and related accounts in the financial statements are referred to as management assertions. General transaction related audit objectives ensure that the auditor has the flexibility to decide which audit evidence will be appropriate to satisfy management assertions. The specific transaction related audit objectives are objectives of each material class of transaction developed after the general transaction audit objectives have been determine. The relationship among these three concepts is the occurrence, completeness, accuracy, classification timing and post and summarization assertions.
* (1) The client uses access security software to limit access to each of the accounting applications. * (2) Employees are assigned a user ID and password that must be changed every quarter. * (3) The sales system automatically computes the total sale amount and posts the total to the sales journal master file. * (4) Systems programmers are restricted from doing applications programming functions.