In a certain company, one accountant records most of the adjusting journal entries at the end...

In a certain company, one accountant records most of the adjusting journal entries at the end of the month. What type of analysis could be used to identify that this happens and the cumulative size of the transactions that the one accountant records? Is this a problem or if not, when would it be?

Solutions

Expert Solution

A)Any software the company generally uses for accounting purpose will have posting date and accounting/document date.Now what is the difference between posting date and accounting/ document date

Posting date:

this is the date when the transaction has been entered or posted in the system ie the date on which it is actually brought into books of accounts

Accounting/ Document Date:

This is the date on which the transaction has actually incurred and the date on which the transaction should actually be recorded.

From the above one can identify when the entries are posted in delay.

b) Delay in posting shall have an adverse impact in the following cases,

1.Cash will not get tallied in turn you will not know what is should be the actual cash balance you should have in your hand.

2.Chances of ommision of entries being recorded

3.Bank reconciliation entries may not get tallied

4.if cash has been stolen insurance may not be claimed for the fullest if physical cash was more than the book.

]

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Adjusting Entries – III. Provide the adjusting journal entries at year-end 2019 for the following independent...

Adjusting Entries – III. Provide the adjusting journal entries at year-end 2019 for the following independent situations (assume calendar year) 1. On March 1, 2019. Finland Tutorials received P60,000 representing an advance payment for services to be rendered in November 2019. This was booked using a real account. At year end, only 70% of the expected service was rendered. 2. The trial balance of Mangolia Café shows Kitchen Supplies and Kitchen Supplies Expense accounts at balances of P8,400 and P0,...

X Company's accountant made adjusting entries at the end of the period for the following reasons:...

X Company's accountant made adjusting entries at the end of the period for the following reasons: $2,862 of unpaid interest on a bank loan $507 of wages that were earned by employees but not paid $1,380 of insurance that expired What was the effect of these entries on total equities?

X Company's accountant made adjusting entries at the end of the period for the following reasons:...

X Company's accountant made adjusting entries at the end of the period for the following reasons: $1,059 of unpaid interest on a bank loan $553 of wages that were earned by employees but not paid $1,380 of insurance that expired What was the effect of these entries on total assets?

X Company's accountant made adjusting entries at the end of the period for the following reasons:...

X Company's accountant made adjusting entries at the end of the period for the following reasons: $2,443 of unpaid interest on a bank loan $564 of wages that were earned by employees but not paid $1,490 of insurance that expired What was the effect of these entries on total equities?

Course Contents » X Company's accountant made adjusting entries at the end of the period for...

Course Contents » X Company's accountant made adjusting entries at the end of the period for the following reasons: $1,059 of unpaid interest on a bank loan $553 of wages that were earned by employees but not paid $1,380 of insurance that expired What was the effect of these entries on total assets?

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries:

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries: A man came into Cutting Edge on 31 March 2020 to pay for repairs to his mower which he will bring in later. He paid $2,500 cash. The mower was arranged to be delivered to Cutting Edge on 10 April, 2020.  Repair services of $6,250 were provided on 31 March 2020 but have not yet been recorded in the transactions. Payment has...

1)Record the end of month adjusting entries in the general journal. Music Equipment owned by the...

1)Record the end of month adjusting entries in the general journal. Music Equipment owned by the business: original purchase price was $50,000, estimated useful life was 8 years, and estimated residual value was $8,900 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year. A number of music lessons totalling $3,700...

Prepare the Adjusting Journal Entries (AJEs) that should be made on December 31, 2018, the end...

Prepare the Adjusting Journal Entries (AJEs) that should be made on December 31, 2018, the end of the accounting year, for each of the following independent situations. If no AJE is required, indicate “none.” Assume the firm only makes AJEs at the end of the accounting year. On March 31, 2018, the firm collected $12,000 of rent for 12 months in advance. The journal entry to record the receipt included a credit to a temporary account. Revenue (3*1,000) 3,000 Unearned 3,000 On...

Explain why adjusting journal entries are required at the end of the accounting period? (3 marks)...

Explain why adjusting journal entries are required at the end of the accounting period? Explain how a firm’s net cash position in the Cashflow Statement can decrease during a year when the profit has increased. Give an example. (2marks) In accounting for inventories and cost of goods sold, why are cost flow assumptions such as FIFO and LIFO needed? Why not just use the specific identification method? Explain the impact on the Income Statement of using the LIFO inventory valuation...

Use the adjusting journal entry information to prepare the formal adjusting journal entries as of December...

Use the adjusting journal entry information to prepare the formal adjusting journal entries as of December 31, 2020. Remember to skip a line between each adjusting journal entry and use AJ1, AJ2, AJ3, etc, instead of the actual date. Information for Year End Adjusting Journal Entries December 31, 2020 1) The building(cost of $180,000)was purchased on January 1, 2019 and it is expected to have a useful life of 30 years with no salvage value. Depreciation expense has been recorded...

Subjects