Scribd Logo
Unggah

Selamat datang di Scribd!

  • (BA 123) Answer Audit of Liabilities

    Diunggah oleh

    Juvy Dimaano
    72 tayangan14 halaman
    The document contains accounting information for notes payable, bonds payable, interest expense, and lease accounting. It identifies adjustments needed between the recorded amounts in the accounting books versus the audited amounts. For notes payable, bonds payable, and interest expense, correcting entries are provided to properly record interest expense and payable over time. For the lease, the entry made is incorrect and a correcting entry is outlined to properly record the lease liability, interest expense, and executory costs.

    Deskripsi Asli:

    Answer

    Judul Asli

    [BA 123] Answer Audit of Liabilities

    Hak Cipta

    © © All Rights Reserved

    Format Tersedia

    XLSX, PDF, TXT atau baca online dari Scribd

    Apakah menurut Anda dokumen ini bermanfaat?

    Apakah konten ini tidak pantas?

    Laporkan Dokumen Ini
    The document contains accounting information for notes payable, bonds payable, interest expense, and lease accounting. It identifies adjustments needed between the recorded amounts in the accounting books versus the audited amounts. For notes payable, bonds payable, and interest expense, correcting entries are provided to properly record interest expense and payable over time. For the lease, the entry made is incorrect and a correcting entry is outlined to properly record the lease liability, interest expense, and executory costs.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai XLSX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    72 tayangan14 halaman

    (BA 123) Answer Audit of Liabilities

    Diunggah oleh

    Juvy Dimaano
    The document contains accounting information for notes payable, bonds payable, interest expense, and lease accounting. It identifies adjustments needed between the recorded amounts in the accounting books versus the audited amounts. For notes payable, bonds payable, and interest expense, correcting entries are provided to properly record interest expense and payable over time. For the lease, the entry made is incorrect and a correcting entry is outlined to properly record the lease liability, interest expense, and executory costs.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai XLSX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 14

    Notes payable

    beginning
    1-Apr-11
    1-Apr-12
    Notes payable, per audit
    Notes payable, per books
    Adjustment

    10,000,000.00
    (2,000,000.00)
    (2,000,000.00)
    6,000,000.00
    6,000,000.00
    -

    Interest payable
    NP, balance
    interest rate
    time period
    Interest payable, per audit
    Interest payable, per books
    Adjustment

    6,000,000.00
    5%
    3/ 4
    225,000.00
    225,000.00

    Interest expense
    Principal, January
    interest rate
    time period
    January - March

    8,000,000.00
    5%
    1/ 4
    100,000.00

    Principal, April
    interest rate
    time period
    April - December
    Interest expense, per audit
    Interest expense, per books
    Adjustment

    6,000,000.00
    5%
    3/ 4
    225,000.00
    325,000.00
    400,000.00
    (75,000.00)

    Entry made
    Dr. Interest expense
    Cr. Cash

    No entry for accrual of interest

    400,000.00
    (400,000.00)

    Dr.
    Cr. Interest payable
    Cr. Interest expense

    Should be entry
    Dr. Interest expense for the priod per
    Dr. Interest expense for the period
    Cr. Cash
    Dr. Interest expense for the period
    Cr. Interest payable

    r. Interest payable
    r. Interest expense

    hould be entry
    r. Interest expense for the priod per
    r. Interest expense for the period

    r. Interest expense for the period


    r. Interest payable

    (225,000.00)
    (75,000.00)

    300,000.00
    100,000.00
    (400,000.00)
    225,000.00
    (225,000.00)

    (300,000.00)

    PAJE
    Dr. RE, beg
    Cr. Interest expense

    Dr. Interest expense f


    Cr. Interest payable

    400,000.00
    225,000.00
    325,000.00

    300,000.00
    (300,000.00)

    225,000.00
    (225,000.00)

    (300,000.00)

    coupon
    ytm

    8%
    7%

    Par
    20,000,000.00
    Interest
    1,600,000.00
    CV date of issuance
    coupon
    ytm

    term
    10
    0.5083492921
    7.0235815409

    8%
    7%

    Par
    20,000,000.00
    Interest
    1,600,000.00
    CV date of issuance
    Premium per audit
    Premium per books
    PAJE

    10,166,985.84
    11,237,730.47
    21,404,716.31
    term
    7

    0.6227497419
    5.3892894016

    Entry made

    12,454,994.84
    8,622,863.04
    21,077,857.88
    1,077,857.88
    1,123,773.00
    45,915.12

    Should be

    Interest expense
    Interest payable

    1,600,000.00
    (1,600,000.00)

    Premium
    Interest expense
    <straight line>

    140,472.00
    (140,472.00)

    same

    Premium
    Interest expense

    coupon
    ytm

    8%
    7%

    Par
    20,000,000.00
    Interest
    1,600,000.00
    CV date of issuance
    YTM
    Interest expense, per audit
    Interest expense, per books
    Adjustment

    116,401.82
    (116,401.82)

    term
    8
    0.582009
    5.971299

    11,640,182.09
    9,554,077.61
    21,194,259.70
    7%
    1,483,598.18
    1,459,528.00
    24,070.18

    Interest ex
    Premium

    24,070.18
    (24,070.18)

    Premium
    RE, beg

    69,985.30
    (69,985.30)

    Premium
    Adj1

    (1,123,773.00)
    (24,070.18)
    (1,147,843.18)
    1,077,857.88
    (69,985.30)

    coupon
    ytm

    4.50%
    5.50%

    Par
    5,000,000.00
    Interest
    225,000.00
    Simple bond
    Proceeds from issuance
    CSOO, per audit
    CSOO, per books

    term
    20
    0.342728963
    11.95038248

    Entry made
    none

    April
    October
    April
    October
    April
    October
    April
    October
    April
    October
    April
    October
    April
    October
    April
    October
    April
    October
    April
    October

    1,713,644.82
    2,688,836.06
    4,402,480.88
    5,000,000.00
    597,519.12
    0
    597,519.12
    Should be
    Dr. Discount
    Cr. CSOO

    2008
    2008
    2009
    2009
    2010
    2010
    2011
    2011
    2012
    2012
    2013
    2013
    2014
    2014
    2015
    2015
    2016
    2016
    2017
    2017

    4.50%
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00
    225,000.00

    5.50%
    242,136.45
    243,078.95
    244,073.30
    245,122.33
    246,229.05
    247,396.65
    248,628.47
    249,928.03
    251,299.08
    252,745.53
    254,271.53
    255,881.46
    257,579.94
    259,371.84
    261,262.29
    263,256.72
    265,360.84
    267,580.68
    269,922.62
    272,393.36

    CV, October 1
    Amortization
    CV, 12/31/2012, per audit
    Discount, per audit
    Discount, per books
    Adj 1

    597,519.12
    (597,519.12)

    17,136.45
    18,078.95
    19,073.30
    20,122.33
    21,229.05
    22,396.65
    23,628.47
    24,928.03
    26,299.08
    27,745.53
    29,271.53
    30,881.46
    32,579.94
    34,371.84
    36,262.29
    38,256.72
    40,360.84
    42,580.68
    44,922.62
    47,393.36
    4,623,118.71
    14,635.76
    4,637,754.47
    362,245.53
    0
    597,519.12

    Adj 2
    Discount, before final adjustment
    Final adj

    Dr. RE, beg


    Cr. Discount

    179,742.77
    (179,742.77)

    (55,530.83)
    541,988.30
    179,742.77

    PAJE
    Dr. Discount
    Cr. CSOO

    597,519.12
    (597,519.12)

    4,402,480.88
    4,419,617.32
    4,437,696.28
    4,456,769.57
    4,476,891.90
    4,498,120.95
    4,520,517.61
    4,544,146.07
    4,569,074.11
    179,742.77
    4,595,373.18 Jan - Mar 31
    125,649.54
    4,623,118.71 April 1- Sept 31
    252,745.53
    4,652,390.24 Oct 1 - Dec 31
    127,135.76
    4,683,271.70
    505,530.83 Interest expense, per audit
    4,715,851.64
    450,000.00 Interest expense, per books
    4,750,223.48
    55,530.83
    4,786,485.78
    4,824,742.49
    PAJE
    4,865,103.33
    Dr. Interest expense
    55,530.83
    4,907,684.01
    Cr. Discount on BP
    (55,530.83)
    4,952,606.64
    5,000,000.00

    e, per audit
    e, per books

    BPO
    Total payment
    Executory costs
    ALP
    implicit rate
    term

    PV of ALP
    PV of BPO
    Lease Liability, Jan 1

    500,000.00
    520,000.00
    (20,000.00)
    500,000.00
    6%
    5.00
    0.75
    4.21
    2,106,181.89
    373,629.09
    2,479,810.98

    (1) PAJE
    Dr. Lease Liability
    Cr. Lease Expense
    (2) PAJE
    Dr. Leased Equipment
    Cr. Lease Liability
    Dr. Interest expense
    Cr. Interest payable
    Dr. Operating expense
    Cr. Lease executory cost payable

    Should be
    Dr. Lease Liability
    Dr. Interest payable
    Dr. Lease executory cost payable
    Cr. Cash

    520,000.00
    (520,000.00)

    2,479,810.98
    (2,479,810.98)
    148,788.66
    (148,788.66)
    20,000.00
    (20,000.00)

    351,211.34
    148,788.66
    20,000.00
    520,000.00

    (3) PAJE Depreciation


    Dr. Depreciation Expense
    Cr. Accumulated depreciation

    375,962.20
    (375,962.20)

    Anda mungkin juga menyukai