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This is an assignment from SAB 108 for Iron Curtain and Rollover procedure

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This is an assignment from SAB 108 for Iron Curtain and Rollover procedure. Should not take more than 10 minutes to complete adjusting entries. Thank you in advance;Attachment Preview;Assignment 10(1).doc Download Attachment;Assignment:IronCurtainversusRolloverevaluationsofmisstatementmateriality;andcorrectingentriesunderSAB108;Foreachindependentscenariobelow,preparethe2011correctingentriesthatwouldbe;requiredunder(A)theironcurtainapproach,(B)therolloverapproachand(C)SAB108.;Assumethattolerablemisstatementforthe2011financialstatementsissetat$800and;assumethattheidentifiedpriorperiodmisstatementswereconsideredimmaterialand;werethereforenotcorrected.;1. In2010,thecompanyrecordeda$1000salethatactuallyoccurredin2011.;2. In2010,thecompanyrecordeda$500salethatactuallyoccurredin2011.In;2011,thecompanyfailedtorecorda$400sale.;3. In2010,thecompanyrecordeda$600salethatactuallyoccurredin2011.In;2011,thecompanysimilarlyrecordeda$500salethatactuallyoccurredin2012.;4. Attheendof2010,thecompanyhadunderaccruedthewarrantyliabilityby;$700.In2011,$300ofrelatedwarrantyclaimswerepaid.Attheendof2011;theunderaccrualhadgrownto$1600.;5. Attheendof2010,thecompanyhadunderaccruedthewarrantyliabilityby;$700.In2011,$300ofrelatedwarrantyclaimswerepaid.Attheendof2011;theunderaccrualhadgrownto$1200.;6. Thecompanydidnotaccruedsalaryexpenseof$500attheendof2010.The;companysimilarlydidnotaccruesalariesof$1500attheendof2011.;7. Thecompanyoverestimatedbaddebtexpenseby$400in2009,by$200in2010;and$500in2011.;8. Thecompanyfailedtoaccrueutilityexpenseof$1200in2011.

 

Paper#19361 | Written in 18-Jul-2015

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