Your client, PPC Ltd., prepared the following schedule for long-term debt for the audit of financialstatements for the year ended December 31, 2020:DescriptionNational Bank-Long term loansMortgagepayableBonds payableTOTALInterest Due daterate7.5 %20257.75% 20276%2026Beginning Additions Payments Endingbalancebalance1/1/202031/12/2020900,0001,000,0002,000,0003,100,0006,000,000100,000100,0001,500,000500,000200,0002,900,000700,000 5,400,000Requirements:a) What types of evidence would you use to support above figures? (16marks)b) What procedures would you perform related to the ending balances in the accounts? (4marks)

So there are basically many type of audit procedures that can be applied in order to get the all…

ents for the year ended December 31, 2020: Interest Due date rate Description National Bank- Long term loans Mortgage payable Bonds payable TOTAL 7.5% 2025 7.75% 2027 6% 2026 Beginning Additions Payments Ending balance balance 1/1/2020 900,000 100,000 2,000,000 3,100,000 6,000,000 100,000 500,000 31/12/202 1,000,00 1,500,00 200,000 2,900,00 700,000 5,400,00 equirements: What types of evidence would you use to support above figures? (16marks) What procedures would you perform related to the ending balances in the accounts? (4mar

ents for the year ended December 31, 2020: Interest Due date rate Description National Bank- Long term loans Mortgage payable Bonds payable TOTAL 7.5% 2025 7.75% 2027 6% 2026 Beginning Additions Payments Ending balance balance 1/1/2020 900,000 100,000 2,000,000 3,100,000 6,000,000 100,000 500,000 31/12/202 1,000,00 1,500,00 200,000 2,900,00 700,000 5,400,00 equirements: What types of evidence would you use to support above figures? (16marks) What procedures would you perform related to the ending balances in the accounts? (4mar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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