Ask Question, Ask an Expert


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


Current assets:






Accounts receivable, net



Note receivable






Prepaid expenses



Total current assets



Other assets:






Buildings, net



Equipment, net









Total other assets



Total assets






Liabilities and Shareholders' Equity


Current liabilities:



Accounts payable



Salaries payable



Interest payable



Total current liabilities



Long-term liabilities:



Note payable



Bonds payable



Unearned revenue



Total long-term liabilities



Shareholders' Equity:



Common Stock



Retained earnings



Total shareholders' equity



Total liabilities and shareholder's equity



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.

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

Accounting assignmentmotorcade company has three service

Accounting Assignment Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs:   Budget ...

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 ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

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 ...

Accounting1 lisa inc estimates that its employees will

Accounting 1. Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actu ...

Requirementsdo not use any direct quotes andor cut and

Requirements: Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel ...

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 ...

Company expansion - internationallocate the financial

Company Expansion - International Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The ...

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 ...

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 ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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