A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party. To state: the auditor should perform forpositive confirmations of follow-up work

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Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

Answer 1

Question

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

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Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

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Answer 2

Question

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

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Answer 3

Question

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

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Answer 4

Question

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

Answer 6

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

Answer 7

Chapter 9, Problem 64RSCQ

a

To determine

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

Answer 8

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

Answer 9

b

To determine

Introduction:A confirmation is a letter sent by an auditor to the customers of a client. To verify the payable and receivable balances associated with the customers in the client's financial records, it is followed.

To ascertain: the auditor should perform fornegative confirmations of follow-up work

Answer 10

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Ch. 9 - Prob. 1TFQ Ch. 9 - Prob. 2TFQ Ch. 9 - Prob. 3TFQ Ch. 9 - Prob. 4TFQ Ch. 9 - Prob. 5TFQ Ch. 9 - Prob. 6TFQ Ch. 9 - Prob. 7TFQ Ch. 9 - Prob. 8TFQ Ch. 9 - Prob. 9TFQ Ch. 9 - Prob. 10TFQ

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party. To state: the auditor should perform forpositive confirmations of follow-up work

Solution Summary: The author explains that a positive confirmation shows higher quality of evidence, compared to the negative confirmation, as the auditor receives explicit evidence from the third party.

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work

Chapter 9 Solutions

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party. To state: the auditor should perform forpositive confirmations of follow-up work

Solution Summary: The author explains that a positive confirmation shows higher quality of evidence, compared to the negative confirmation, as the auditor receives explicit evidence from the third party.

Introduction: A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party. To state:the auditor should perform forpositive confirmations of follow-up work

Chapter 9 Solutions

Introduction:

A positive confirmation is representing a higher quality of evidence in compare to a negative confirmation, as the auditor receives explicit evidence from the third party.

To state:the auditor should perform forpositive confirmations of follow-up work