During the course of the 2017 audit of Smithson Company, the
auditor discovered the following situations that may or may not
require an adjusting journal entry. Each audit finding is
independent of any of the other findings. Indicate the adjusting
journal entry, if required, to correct the audit finding. If no
entry is required, indicate whether or not a related footnote
should be included in the financial statements. Would any of the
findings cause you to consider increasing your assessment of fraud
risk?
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Audit finding |
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The bank’s confirmation reply regarding the company’s line of credit indicated that the December 2017 interest of $11,200 was unpaid at year-end. Interest expense has been recorded by the company as it was paid (through November 2017). |
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Employee overtime pay for hours worked before year-end, but paid in the following year in the amount of $18,500, was not recorded in 2017. |
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In the last week of 2017, the company recorded $145,000 revenue for services rendered to some clients on account in 2018. |
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During 2017, a former client sued the company for inappropriate work. Legal counsel has advised that it is “reasonably possible” that the company will be assessed damages. An amount of $200,000 has been estimated as the possible loss. |
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On January 2, 2018, a major customer owing $50,000 to the company for services provided in November 2017 filed for bankruptcy. Collection of the account receivable is not expected. No entry was made by the client to recognize this fact. |
In: Accounting
Current Scenario:
Happy homes Inc. is one of the top 10 new construction companies in the Northwest region of Florida. Its headquarter is in Niceville, Fl. Happy homes deal in new construction homes in affordable and sought after subdivisions.
In January 2015 Happy homes was founded by Dominick Linnus and Ella Linnus. In the second year, it was named the best home builders by the better business bureau. In 2019 the company was sold to Brian Butter. Since the new CEO took over he switched the use of the electrical, plumbing, and construction contractors. He has been contracting with lower quality workers at high-end prices since his father has affiliations with the newly selected contractors. This has been crippling our quality of homes and our ROI. In the past, we were constructing 38 homes a year with a profit of 100,000 per home. Currently, from June of 2019 to the present we have only built and sold 18 homes with a net profit of 75,000 per home. This new project plan is designed to build 38, 3,000 square ft homes in a subdivision within a year for under 475,000 with an estimated appraisal/sale value of 575,000.
(As of 1 Jun 2020)
CEO: Brian Butter
No. of Employees: 50
Last years numbers
Revenue: $ 1,350,000
Net Income: 7,200,000
Net Assets: $ 750,000
In: Operations Management
MANAGEMENT TITLE ACRONYMS: Matching: ONE answer each
A. BOD B. CAO C. CCO D. COO E. CTO
A. CFO B. CEO
75. In charge of the machinery and technical assets of an organization.
76. Essentially a group of consultants working for the company who among other things, are responsible for hiring and firing the
CEO of the organization.
77. In charge of gathering and then reporting certain statistics to the government or other monitoring organizations
regarding how much and how well the organization is achieving specific required goals and mandates.
78. In charge of product production/manufacturing operations of an organization.
79. In charge of the Administrative functions of an organization.
80. In charge of the Finance function of an organization.
81. The top, highest ranking, person in the organization.
PASSWORD/IDENTIFICATION TECHNIQUES (Matching) (one answer each!)
A. Something you have B. Something you know C. Something you do D. Something you are
82. Your mother’s maiden name
83. An eyeball scan
84. Your password (not “something you do”)
85. A key or an identification card
86. A special way of doing handshakes with other people (not “something you know”)
87. Biometrics
In: Operations Management
What four financial statements can be found in a firm's 10-K filing? What checks are there on the accuracy of these statements?
Every public company is required to produce quarterly and annual financial statements. Those statements are: (Select all the choices that apply.)
A.The statement of financial position.
B. The income statement.
C. The statement of cash flows.
D. The statement of stockholders' equity.
E. The statement of stockholders' liabilities.
What checks are there on the accuracy of these statements? (Select all the choices that apply.)
A. Public companies must use a common set of rules and standard format when they prepare their reports.
B. Corporations are required to hire a neutral party, known as an auditor, to check the annual financial statements, ensure that the statements are prepared according to GAAP and provide evidence to support the reliability of the information.
C. In addition to the auditor's role in reviewing the financial statements, the Sarbanes-Oxley Act requires both the CEO and the CFO to personally attest to the accuracy of the financial statements presented to shareholders and to sign a statement to that effect.
D. When an auditor is not available, a corporation's CFO or the CEO can certify that financial statements are prepared according to GAAP.
In: Finance
One share of Global Core Development Systems, Ine [an imaginary company with the abbreviation: Go-CDS] stock was priced at $32.50 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money who has invested in Go-CDS? In other words, how long until the price per share has doubled.
Here are some facts about Go-CDS:
Very stable company with a proven track record of manufacturing.
The normal growth of Go-CDS's stock has averaged a monthly growth rate of 0.1% in the share price. (This means that the price per share goes up by 0.1% each month over the last month's price.)
Beginning in March 2015, each time Go-CDS releases a quarterly report (on the 15 of the months of March, June, September and December each year), the stock share price increased immediately by 4.5% due to the continuing, favorable outlook for Go-CDS's products in the marketplace. Due to a merger with another manufacturing company in the 17 month after 1/1/2015, the monthly growth rate increased to 1.15% until the end of THAT calendar year (after the 24 month). Beginning with month 25, the monthly growth rate increased to 1.25% per month. Unfortunately, due to a bad set of business decisions in 2018, the Board fired the CEO which instantly cut the share price on Oct 5, 2018 by S15.00 (the 34 month). A new CEO was immediately hired on Oct 10, 2018.
The company growth rate reset to 1.05% per month after the new CEO was hired due to bad press.
Problem: Write a MATLAB program to solve the following questions:
Question 1: In what month does the stock exceed twice the price per share on Jan 1, 2015?
Question 2: Prepare a plot of the stock's per-month price movement over the course of ONLY the years 2017 until the price has doubled ONLY (which is from months 25 until the answer to Question #1). You will need to adjust the plot routine to ONLY show these months. To limit the plot to these months, add the following command:
axis ([25,49,50,701)
This command sets the x-axis range to "25-48" and the y-axis range to “50-70"
ALSO, add the following command to put a note on your plot:
text (40, 52, 'Note: Price as of 1st of the month')
This command adds text at coordinate: (40 months and $52)
In: Other
One share of Global Core Development Systems, Inc (an imaginary company with the abbreviation: Go-CDS) stock was priced at $14.31 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money who has invested in Go-CDS? In other words, how long until the price per share has doubled.
Here are some facts about Go-CDS:
Problem: Write a MATLAB program to solve the following questions:
Question 1:
In what month does the stock exceed 2 times the price of $14.31?
Question 2:
Prepare a plot of the stock's per-month price movement over the course starting from the first month of year 2017 until the price has exceeded 2 times the price of $14.31. (You plot should start from month 25, and should cover the month that is the answer to Question #1.) You will need to adjust the plot routine to ONLY show these months.
To limit the plot to these months, add the following command after your xlabel and ylabel commands:
| axis ([25, 41, 20, 30]) |
| xticks (0:4:length(P)) |
| yticks (0:2:30) |
How do I code this is MATLAB?
In: Computer Science
KCT Farms (KCT) is a private Canadian company that produces markets and distributes a variety of dairy products including cheese, milk, and extended life milk and cream products. The Farm is located in Southwestern Ontario, however, they currently ship products to retailers in Ontario and Quebec. KCT farms incorporated 30 years ago by the Kris Family. The company has a June 30 year-end.
You have been hired to work in KCT’s finance department. In a recent meeting with the CEO, she indicated that the company is looking to obtain additional financing to expand their current operations to other provinces. If that expansion is successful, KCT is hopeful that they will be able to gain attention of international investors and will be able to expand into the US, Europe and beyond. However, for the time being, the company has approached the bank for additional financing. The bank has requested that KCT provide GAAP compliant financial statement. The Kris family does not really know much about GAAP, and what their options are, and has asked that you provide some context.
It is now July 15, 2019 and you are preparing the year-end financial statements and note disclosures. You meet with the CEO and she has asked that you provide assistance prioritizing the issues facing KCT. In your discussion, following contentious issues were identified:
- During the year, KCT sold a parcel of land with a gain of $1.5million. The $4.8 million sales price has been included in sales and the $1.3 million carrying amount has been included in cost of goods sold.
- KCT accounts for its capital assets on an historical cost basis, but has not recorded depreciation on a few specific pieces of equipment. The assets in question include: Land costing $1.2 million a new state of the art manufacturing facility costing $10.5million, and 10 new processing machines costing $200,000 each. The Company’s owners have always felt that depreciation does not represent the true economic value of the equipment, and skewed the overall income in a way that is not meaningful to investors.
- During 2018, an ex-employee sued KCT in the amount of $450,000 for wrongful dismissal. Correspondence between the KCT legal team and the plaintiffs counsel indicates that a settlement of $125,000 would be acceptable to the employee. KCT has not yet agreed, but their legal counsel is suggesting that they go forward with the out of court settlement. If an agreement does not come about, court proceedings would not commence late until 2019. KCT plans to record the amount in the financial statements when the final amount is finalized.
Prepare your report to the CEO that addresses the contentious accounting issues. Provide support for your recommendations. Using the CPA way to solve this Case
In: Accounting
PLEASE read paragraphs and respond rather you agree or disagree! the answers are from the following questions 1. Do you believe that Nike has a responsibility to pay workers on foreign shores a living wage, in other words, should they JUST DO IT? 2. Are you willing to pay more for Nike products to make that happen? 3. Would you be willing to boycott Nike products if they continue to refuse to do so?
Your repond should be 200 words! thanks
1. I believe that Nike should pay workers on foreign shores a living wage. The company makes billions of dollars a year and a small decrease in profit will not hurt them. Every human being regardless where they are from or their economic status, should have their dignity intact. Nike pays millions of dollars to athletes to wear and market their brand. Why not pay workers in lower living wage workers if you have the money to spend on famous athletes? In the video, Michael Moore tries to convince the CEO of Nike, Phil Knight, to go to Indonesia and visit one of Nike’s factories. Phil refuses the offer because what he will see will not be pleasant.
2. I would not pay more money to Nike to make things happen. Nike pays famous athletes to wear their brand, then why should consumers pay more money to benefit those in lower wage countries? Nike makes billions of dollars in profits. Why not use part of those profits to benefits those employees? Instead of endorsing famous athletes, it’s best to use that money and increase the wages to those employees working in those horrible sweatshops.
Nike placed a code of conduct for their factories on how employees should be treated. When Michael Moore suggested for Phil Knight to visit one of factories, he declined. What makes you think that this code of conduct will be executed properly? Not even the CEO wanted to see his own factories. The CEO, executives, and upper management should make sure that all the factories and other branches follow through with their vision for the company. By starting from the top to the bottom, they can make that changes that are needed for a better workplace.
3. Nike isn't a brand that I currently purchase or would purchase in the future after reading and watching these videos. If people were to boycott this company, they will see more damages when it comes to the profits. It is evident that Nike is more interested in making more money for the company and its stockholders. Nike prefers to spend million of dollars in endorsements than helping their own employees.
In: Economics
Science Model
One share of Global Core Development Systems, Inc (an imaginary company with the abbreviation: Go-CDS) stock was priced at $14.59 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money who has invested in Go-CDS? In other words, how long until the price per share has doubled.
Here are some facts about Go-CDS:
Write a MATLAB program to solve the following questions: Use matlab to make plot
1. In what month does the stock exceed 2 times the price of $14.59?
2. Prepare a plot of the stock's per-month price movement over the course starting from the first month of year 2017 until the price has exceeded 2 times the price of $14.59. (You plot should start from month 25, and should cover the month that is the answer to Question #1.) You will need to adjust the plot routine to ONLY show these months.
To limit the plot to these months, add the following command after your xlabel and ylabel commands:
| axis ([25, 56, 19, 31]) |
| xticks (0:4:length(P)) |
| yticks (0:2:31) |
In: Computer Science
Describe to the CEO how the 5Vs of big data could impact this analytic project ?
In: Accounting