EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 11, Problem 11.30P
To determine
Introduction:
To ensure the proper cut off of the payables and accruals and prepare the adjusting
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You were engaged in the audit of Pelton Company as of December 31, 2021. The company is on a physical inventory basis.
The physical inventory was actually taken on December 28, 2021. You have observed the taking of the physical inventory.
As taken, the physical inventory only included only merchandise received through December 28, 2021.
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days of 2021 and the first few days of year 2022:
DECEMBER 2021
Receiving Report No.
24201
Freight terms
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P35,000
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Shipping point
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Assume that in an annual audit of Wildhorse Inc. at December 31, 2025, you find the following transactions near the closing date.
Assuming that each of the amounts is material, state whether the merchandise should be included in the client's inventory.
1.
2.
3.
4.
5.
Transactions
A special machine, fabricated to order for a customer, was finished and specifically segregated in the
back part of the shipping room on December 31, 2025. The customer was billed on that date and the
machine excluded from inventory although it was shipped on January 4, 2026.
Merchandise costing $5,880 was received on January 3, 2026, and the related purchase invoice
recorded January 5. The invoice showed the shipment was made on December 29, 2025, f.o.b.
destination.
A packing case containing a product costing $7,140 was standing in the shipping room when the
physical inventory was taken. It was not included in the inventory because it was marked "Hold for
shipping instructions." Your investigation revealed…
Assume that in an annual audit of Pharoah Inc. at December 31, 2020, you find the following transactions near the closing date.Assuming that each of the amounts is material, state whether the merchandise should be included in the client’s inventory.
Transactions
1.
A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2020. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2021.
select an option IncludeDo not include
2.
Merchandise costing $5,180 was received on January 3, 2021, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2020, f.o.b. destination.
select an option IncludeDo not include
3.
A packing case containing a…
Chapter 11 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 11 - Prob. 11.1RQCh. 11 - Prob. 11.2RQCh. 11 - Prob. 11.3RQCh. 11 - Prob. 11.4RQCh. 11 - Prob. 11.5RQCh. 11 - Prob. 11.6RQCh. 11 - Prob. 11.7RQCh. 11 - Prob. 11.8RQCh. 11 - Prob. 11.9RQCh. 11 - Prob. 11.10RQ
Ch. 11 - Prob. 11.11RQCh. 11 - Prob. 11.12RQCh. 11 - Prob. 11.13MCQCh. 11 - Prob. 11.14MCQCh. 11 - Prob. 11.15MCQCh. 11 - Prob. 11.16MCQCh. 11 - Prob. 11.17MCQCh. 11 - Prob. 11.18MCQCh. 11 - Prob. 11.19MCQCh. 11 - Prob. 11.20MCQCh. 11 - Prob. 11.21MCQCh. 11 - Prob. 11.22MCQCh. 11 - Prob. 11.23MCQCh. 11 - Prob. 11.24PCh. 11 - Prob. 11.25PCh. 11 - Prob. 11.26PCh. 11 - Prob. 11.27PCh. 11 - Prob. 11.28PCh. 11 - Prob. 11.29PCh. 11 - Prob. 11.30P
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