The purpose of an audit trail is to be able to trace a transaction from its original through source documents to the final output or backwards from the final output to the original source documents to prove the accuracy and validity of Ledger postings. Describe in detail the audit trail for the following manufacturing business: b) Customer returns defective good

Q: Compare the Solvency, Liquidity and Profitability for the two companies

A: Solvency of any company is the ability of the company to run its day to day operation. The solvency…

Q: For the raw materials used to make its stoves, Kleslia, SRL has a standard price of $10.92 per gram…

A: Materials price variance = (Standard price x Materials purchased) - Actual cost

Q: Window World extended credit to customer Nile Jenkins in the amount of $134,900 for his purchase of…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals aer…

Q: TRUE OR FALSE 1. Cash inflows that enter into the determination of net income are classified as…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Interest paid by companies from depository banks under the enlarged foreign exchange deposit system…

A: The TRAIN act has introduced reforms on taxation of individuals, transfer taxes, indirect taxes,…

Q: Statement of stockholders' equity Noric Cruises Inc. began the month of October with the following…

A: The statement of shareholders' equity is one of the financial statements of the business, which…

Q: Iakisthike, LLC has two lines of products, Regular and Super, and is thinking about discontinuing…

A: Total fixed manufacturing cost = [$140,000 - (7,000 x $18)] + [$375,000 - (3,000 x $109)] = $62,000…

Q: Net corporate cash flow is a metric created by cash-basis accounting. Explain the metric in detail

A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…

Q: 7. After all closing entries have been posted, the revenue account will have a balance of

A: The revenue account balance is transferred to the income summary account when the closing entry is…

Q: There is no significant relationship between audit fees and non audit fees paid by the client…

A: Auditing is the verification of the accounting statement and for which auditor provides the opinion…

Q: Investment required in equipment. Annual cash inflows... Salvage value Life of the investment.…

A: A simple rate of return is calculated by deducting the depreciation from the annual cash flow and…

Q: Pass the necessary journal entries on the date of purchase, delivery to the lessee, and for the…

A: Assets A/c ..........................................Dr. 2000 Riyals      To Vendor A/c…

Q: Direct materials variances The following data is provided for Bellingham Company: DATA 2.5…

A: Variances are a method to analyse the difference between the standards set and the actual…

Q: Given the following:     Number purchased Cost per unit Total January 1 inventory 41 $ 5   $ 205…

A: Number of units sold = Units purchased - Ending inventory units = 209 - 62 = 147

Q: Skane Shipping Ltd. (SSL) operates a fleet of container ships in international trade between Sweden…

A: Here discuss about the details of total revenue, cost and income taxes and total taxes which are…

Q: TRUE FALSE

A: The answer is TRUE.

Q: Record journal entries for the following purchase transactions of Apex Industries. Nov. 6 Purchased…

A: Introduction: Journals: All the business transactions are to be recorded in journals. Journals are…

Q: The accounting records of Bass SARL contain the following information: Raw Materials Used: $68,479…

A: The cost of goods manufactured is the total value incurred for manufacturing the products. It is a…

Q: What is meant by Owners’ equity?

A: The balance sheet is the financial statement of the business which represents the financial position…

Q: A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a…

A: Depreciation refers to the allocation of the assets value over the expected or the useful life of…

Q: Journal entries Window World extended credit to customer Nile Jenkins in the amount of $134,900 for…

A: N/150 means term credit is allowed to 150 days. On non payment of debts on time it's recorded as bad…

Q: Starr Company decides to establish a fund that it will use 4 years from now to replace an aging…

A: Working:

Q: If the selling price per unit is $15, the unit contribution margin is $5, and total fixed expenses…

A: Introduction: Break even sales units: It tells the level of sales units where there is no profit nor…

Q: 500,000.00 84,800.00 Stockholder's Common S Retained B

A: An income statement is a financial statement that shows a company's revenue and costs. It also shows…

Q: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Ending Capital 4 The following account balances were provided by Kate's Consulting Company as of…

A: In order to determine the Ending capital balance, the net income are added and the dividend paid or…

Q: Describe business activities that affect a firm’s cash flow.

A: The cash flow statement is a financial statement which is prepared to record the cash flow from…

Q: Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the…

A: Further Processing of Product: The decision of whether to sell a product now or continue processing…

Q: What are some challenges and weaknesses that a firm may find in the budgeting process?

A: The lack of proper monitoring and review, lack of clear policy and procedures on budgets, poor…

Q: J 7 Qualtronics, Inc is raising capital for a new silicon chip manufacturing facility. They've…

A: After-tax WACC=Face value of bonds×Post tax cost of bonds+Value of loan×Post tax cost of loan+Amount…

Q: Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per…

A: Contribution margin per dozen = Selling price per dozen - Variable cost per dozen = $4.00 - $1.25 =…

Q: If the selling price per unit is $80, the variable expense per unit is $40, and total fixed expenses…

A: Formula: Break even sales dollars = Break even units x Sales price per unit

Q: Window World extended credit to customer Nile Jenkins in the amount of $134,900 for his purchase of…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your…

A: EAR = (1 + i/n)^n - 1 Where i = interest rate per year, n = no of times compounding in 1 year

Q: A construction company wants to build a 50 housing unit apartment complex and rent them. It is…

A: Annual Rent per housing unit=Total cost per housing unit+Margin

Q: Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per…

A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…

Q: vidends Per Share eventy-Two Inc., a developer of radiology equipment, has stock outstanding as…

A: The dividend per share is calculated as total dividend divided by number of shares outstanding. The…

Q: The following accounts were included n Angels Consultants post-closing trial balance at December 31,…

A: Current assets are those which are realizable into cash within a time period of one year. Current…

Q: The following transactions has transpired during 2021: a. Furniture & fixtures was purchased on…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120…

A: Introduction: Chase strategy: The chase strategy is based on the notion that you will be following…

Q: Use the following information for questions 1 to 7. The Income Statement for the year 2021 of Mira…

A: Closing Journal Entry: Closing journal entries are passed at the end of the accounting period. In…

Q: The accounting information of Haiti Inc shows the records where it adheres to ASPE, find the cash…

A: Cash flow statement was used by organisation to identify cash earned and spent on its various…

Q: ABC’s property originally cost £300,000. After 10 years use it was revalued by £200,000. This…

A: Original Cost = 300000 Depreciation @ 2% 10 Years Depreciation = 300000*2%*10 = 60000

Q: the company assesses the inventory at full production cost. explain (without figures) how it will…

A: Assessment of inventory is a difficult task for organisations. Many methods are adopted to calculate…

Q: Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:…

A: Statement of cash flow is the sum of all cash inflows and cash outflows during the year. The…

Q: Question 39 If the selling price per unit is $10, the unit contribution margin is $5, and total…

A: Introduction: Break even units: It tells the sales level where there is no profit nor loss to the…

Q: James Corporation earned net income of $90,000 this year. The company began the year with 600 shares…

A: Formula: EPS = ( Net income - Preferred dividends ) / weighted average shares outstanding

Q: The prepaid insurance account had a beginning balance of $3,755 and was debited for $6,755 of…

A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current…

Q: Details of courier vehicles owned by Speedy Couriers at 1 July 2018 are as follows: This business is…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: State the accounting equation.

A: The balance sheet represents the financial position of the business with assets, liabilities and…