In line with your audit with DAVE, Inc. financial statements, the company accountantpresented to you the balance sheet that follows. You reviewed the client’s accountingrecords and books based thereon. You discovered that books of accounts are inagreement in the said balance sheet as presented below:  DAVE, INC.STATEMENT OF FINANCIAL POSITIONDecember 31, 2021 ASSETS                                             LIABILITIES AND OWNERS EQUITYCash P 80,000                                  Accounts Payable P 32,000Accounts Receivable 160,000          Notes Payable 64,000Notes Receivable 48,000                 Capital Stock 160,000Inventories 400,000                         Retained Earnings 432,000Total P 688,000                                Total P 688,000 Further review and investigation of the company’s books revealed the followingomissions and errors which were not corrected during the year of errors:                                                             2018     2019         2020          2021Deferred expense                             14,400   11,200       8,000         9,600Deferred income                                            6,400                          4,800Accrued expense                              3,200     1,200          1,600          800Accrued income                                             2,000          2,400Ending inventory - Overstated                      112,000      128,000Ending inventory - Understated     96,000                                     144,000 No dividends were declared during the years 2018 to 2021 and no adjustments weremade to retained earnings. The company’s reported the following net income: The year                2018           2019            2020            2021Net Income      P120,000    P88,000       P104,000      P120,000 NOTE: Disregard tax implications  1. What is the correct net income/(loss) in 2020? 2. What is the net adjustment to Retained earnings as of January 1, 2019?  3. What is the correct retained earnings as of December 31, 2021?

The accountant of Hiddleston Corporation presented to you the following details of its subsidiary ledger in relation to your audit of the company’s accounts receivable balance as of December 31, 2021: Customer                 Invoice Date                Amount Zulu Inc.                   December 20               550,000                                  December 1              1,200,000                                  October 11                   950,000                                  August 4                       420,000 Whiskey Co.             November 20              2,000,000                                  September 4                   900,000                                   August 2                         500,000 Uniform Inc.              December 10                1,750,000                                   October 4                        600,000                                  July 5                               500,000 Uniform Inc.              September 9…

In connection with your examination of the financial statements of Bukel Inc. for the year ended December 31, 2021, you were able to obtain certain information during your audit of the accounts receivable and related accounts The December 31, 2021 balance of Accounts Receivable control accounts is P 788,000 The only entries in the Doubtful Accounts Expense were : A credit for P1,296 on December 2, 2021 because Company A remitted in full for the accounts charged off on October 31, 2021; and A debit on December 31 for the amount of the credit to Allowance for Doubtful Accounts The Allowance for Doubtful Accounts schedule is presented below:       DEBIT    CREDIT       BALANCE January 1, 2021     P             14,632 October 31, 2021       Uncollectible Accounts          Company A – P 1,296          Company B – P 3,280          Company C – P 2,256 P      6,032                   8,600 December 31, 2021   P…

You obtained the following information on the current account of Par Company during your examination of its financial statements for the year ended December 31, 2021. The bank statement on November 30, 2021 showed a balance of P 306,000 . Among the bank credits in November was customer’s noted for P 100,000 collected for the account of the company which the company recognized in December among its receipts. Included in the bank debits were costs of checkbooks amounting to P 1,200 and a P 40,000 check which was charged by the bank in error against Par Company account. Also in November, you ascertained that there were deposits in transit amounting to P 80,000 and outstanding checks totaling P 170,000. The bank statement for the month of December showed total credits of P 416,000 and total charges of P 204,000. The company’s books for December showed total debits of P 735,600 , total credits of P 407,200 and a balance of P485,600. Bank debit memos for December were: No. 121 for service…

Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.

Michael Corporation is on a calendar year basis. The following data were found during your audit: 1) An excerpt from the client’s trial balance revealed the following account balances:Accounts receivable P 80,000Inventory, per count 1,200,000Accounts payable 790,000Net sales 6,050,000Net purchases 3,300,000Net income 610,000 2) The client conducted an inventory count on December 31, 2021. Michael Corporation normally sells at 30% gross profit based on selling price. 3) Goods were in transit FOB destination from a supplier in the amount of P120,000. Further testing revealed that the supplier's invoice pertaining to the delivery was received and recorded on December 28, 2021. 4) Good costing P70,000 had been received on December 31 and recorded as a purchase. However, upon your inspection, the goods were found to be defective and would be immediately returned. 5) Materials costing P224,000, sold and billed on December 30 under a “bill and hold” agreement, had been segregated in the…

Consider the annual report of commonwealth bank or any company (most companies make their annual reports available on the company's website) and find the disclosures explaining the amounts paid to auditors. How much was the auditor paid for the audit, non-assurance, or other services?

You’ve been hired to perform an audit of Hubbard Company for the year ended December 31, 2019. You find the following account balances related to shareholders’ equity: Preferred stock, $100 par $ 33,000 Common stock, $10 par 68,000 Capital surplus (15,100) Retained earnings 172,000   Because of the antiquated terminology and negative balance, you examine the Capital Surplus account and find the following entries:   Credit (Debit) Additional paid-in capital on common stock $ 27,700 Capital from donated land 16,900 Treasury stock (400 common shares at cost) (5,600) Additional paid-in capital on preferred stock 2,000 Stock dividend (50%) (20,000) Prior period adjustment (net of income taxes) (10,100) Loss from fire (uninsured), 2018 (18,100) Property dividend declared (5,600) Cash dividends declared (23,300) Balance $ (36,100)   Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the…

You’ve been hired to perform an audit of Hubbard Company for the year ended December 31, 2019. You find the following account balances related to shareholders’ equity: Preferred stock, $100 par $ 33,000 Common stock, $10 par 68,000 Capital surplus (15,100) Retained earnings 172,000   Because of the antiquated terminology and negative balance, you examine the Capital Surplus account and find the following entries:   Credit (Debit) Additional paid-in capital on common stock $ 27,700 Capital from donated land 16,900 Treasury stock (400 common shares at cost) (5,600) Additional paid-in capital on preferred stock 2,000 Stock dividend (50%) (20,000) Prior period adjustment (net of income taxes) (10,100) Loss from fire (uninsured), 2018 (18,100) Property dividend declared (5,600) Cash dividends declared (23,300) Balance $ (36,100)   Your examination of the Preferred Stock and Common Stock accounts reveals that the amounts shown correctly state the…

Conduct an in-depth analysis of the Bank of St. Vincent and the Grenadines Ltd financial reporting practices and asset management strategies. Here is the report:  BOSVG-Audited-Consolidated-Financial-Statements-FYE-December-31-2022.pdf (ecseonline.com) Using the report evaluate the following: Financial Reporting Analysis: a) Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide. b) Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.) c) Critically analyze any significant accounting policies and estimates disclosed in the notes…