nancy Howe, your staff assistant on the April 30, 20X2, audit of Wilcox Company, was transferred to another audit engagement before she could complete the audit of unrecorded accounts payable. Her working paper, which you have reviewed and are satisfied is complete, appears below. Wilcox Company M-1-1 Unrecorded Accounts Payable April 30, 20X2 Invoice Date Vendor and Description Amount Hill & Harper—unpaid legal fees at April 30, X2 (see lawyer’s letter at M-4) $ 1,000y April 1,X2 Drew Insurance Agency—unpaid premium at year-end on fire insurance for period April 1, X2- March 31, X3 (see insurance broker letter at J-1-1). Payment made on May 7, 20X2. 1,800y April 30,X2 Mays and Sage, Stockbrokers—advice for 100 shares of Madison Limited common stock (settlement date May 7, X2) 2,125y Lane Company—shipment received April 30, X2 per receiver number 3361 and included in April 30, X2, physical inventory; invoice not yet received (amount is per purchase order) 5,863y $ 10,788 y-Examined document described. In my opinion, the $10,788 adjustment includes all material unrecorded accounts payable. N.A.H. May 29, X2
nancy Howe, your staff assistant on the April 30, 20X2, audit of Wilcox Company, was transferred to another audit engagement before she could complete the audit of unrecorded accounts payable. Her working paper, which you have reviewed and are satisfied is complete, appears below. Wilcox Company M-1-1 Unrecorded Accounts Payable April 30, 20X2 Invoice Date Vendor and Description Amount Hill & Harper—unpaid legal fees at April 30, X2 (see lawyer’s letter at M-4) $ 1,000y April 1,X2 Drew Insurance Agency—unpaid premium at year-end on fire insurance for period April 1, X2- March 31, X3 (see insurance broker letter at J-1-1). Payment made on May 7, 20X2. 1,800y April 30,X2 Mays and Sage, Stockbrokers—advice for 100 shares of Madison Limited common stock (settlement date May 7, X2) 2,125y Lane Company—shipment received April 30, X2 per receiver number 3361 and included in April 30, X2, physical inventory; invoice not yet received (amount is per purchase order) 5,863y $ 10,788 y-Examined document described. In my opinion, the $10,788 adjustment includes all material unrecorded accounts payable. N.A.H. May 29, X2
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
