Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem: You recently joined internal auditing department of Kay Sportswear Corporation. As one of your 1st assignments, you are examining a balance sheet created by a staff accountant.

Kay Sportswear Corporation

Balance Sheet

At December 31, 2009

Assets

Current assets:

 

 

Cash

 

$220,000

Accounts receivable, net

 

340,000

Note receivable

 

80,000

Inventories

 

600,000

Prepaid expenses

 

40,000

Total current assets

 

$1,280,000

Other assets:

 

 

Land

$500,000

 

Buildings, net

2,056,000

 

Equipment, net

400,000

 

Investments

50,000

 

Patent

60,000

 

Total other assets

 

3,066,000

Total assets

 

$4,346,000

 

 

 

Liabilities and Shareholders' Equity

   

Current liabilities:

 

 

Accounts payable

 

$165,000

Salaries payable

 

75,000

Interest payable

 

45,000

Total current liabilities

 

285,000

Long-term liabilities:

 

 

Note payable

$300,000

 

Bonds payable

500,000

 

Unearned revenue

80,000

 

Total long-term liabilities

 

880,000

Shareholders' Equity:

 

 

Common Stock

$2,000,000

 

Retained earnings

1,181,000

 

Total shareholders' equity

 

3,181,000

Total liabilities and shareholder's equity

$4,346,000

 

In the course of your examination you uncover the following data pertaining to the balance sheet:

[A] Land and buildings represent the corporate headquarters & manufacturing facilities.

[B] The note receivable is due in 2011. The balance of dollar 80,000 includes dollar 5,000 of accrued interest. The next interest payment is due in July, 2010.

[C] The note payable is due in installments of $50,000 per year. Interest on both the notes and bonds is payable yearly.

[D] The firm's investments consist of marketable equity securities of other corporations. Management does not intend to liquidate any investments in the coming year.

[E] Unearned revenue will be received ratably [equally] over the next two (2) years.

Required; 
Identify and describe deficiencies in the balance sheet prepared by the firm's accountant. Include in your answer items that require additional disclosure, either on the face of the statement or in a note.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922266

Have any Question? 


Related Questions in Cost Accounting

Quiz1 a process cost system would be used for all of the

QUIZ 1 A process cost system would be used for all of the following products except computer chips. chemicals. motion pictures. soft drinks. 2 Differences between a job order cost system and a process cost system include ...

Assignment cost accountingoverviewthe final project for

Assignment: Cost Accounting Overview The final project for this course is the creation of a quantitative analysis with a memo to management. Classifying a company's costs allows for an in-depth analysis of the impact tha ...

Cost accounting- little debbie brownieshere is a copy of

Cost Accounting- Little Debbie Brownies Here is a copy of the assignment. My snack of choice is the Little Debbie Fudge Brownies Comprehensive Product Costing Select your favorite drink or snack item manufactured by a pu ...

Final project milestone three guidelinesoverview

Final Project Milestone Three Guidelines Overview: Classifying a company's costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-pro ...

Assignment- show the step by step solutions to the

Assignment- Show the step by step solutions to the following questions: I. A firm is able to sell 10,000 units at $ 12 per piece. The company fixed cost is $30,000. Variable cost is $6 per unit. 1. What is the contributi ...

Module 3 - slpstrategic choicessimulationin module 3 you

Module 3 - SLP Strategic Choices SIMULATION In Module 3, you will use CVP analysis to inform the pricing of your 3 products. SCENARIO CONTINUATION: You've now completed SLP2, and it the date is (once again) January 1, 20 ...

Discuss cost management as a professionname three

Discuss cost management as a profession Name three professional cost management organizations and explain their roles. Where in the corporate, not for profit, areas would cost accountants work and what types of work woul ...

Cost accountingquestion 1 which of the following statements

Cost Accounting Question 1. Which of the following statements regarding differential costs is (are) false? (A). The full cost fallacy occurs when a decision-maker fails to include fixed manufacturingoverhead in the produ ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen