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    Part 2 Solution To San Mateo Trading

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    This document provides the solution to an audit problem for San Mateo Trading. It includes adjustments to various line items on the company's financial statements such as sales, prepayments, property and equipment, accounts payable, accrued expenses, loans, and interest payable. The adjustments are presented through calculations that derive corrected amounts for financial statement line items based on additional information obtained during the audit.

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    Part 2 Solution To San Mateo Trading

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    38 views7 pages
    This document provides the solution to an audit problem for San Mateo Trading. It includes adjustments to various line items on the company's financial statements such as sales, prepayments, property and equipment, accounts payable, accrued expenses, loans, and interest payable. The adjustments are presented through calculations that derive corrected amounts for financial statement line items based on additional information obtained during the audit.

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    Part 2 Solution to San Mateo Trading

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    This document provides the solution to an audit problem for San Mateo Trading. It includes adjustments to various line items on the company's financial statements such as sales, prepayments, property and equipment, accounts payable, accrued expenses, loans, and interest payable. The adjustments are presented through calculations that derive corrected amounts for financial statement line items based on additional information obtained during the audit.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    38 views7 pages

    Part 2 Solution To San Mateo Trading

    Uploaded by

    Para Sa Picture
    This document provides the solution to an audit problem for San Mateo Trading. It includes adjustments to various line items on the company's financial statements such as sales, prepayments, property and equipment, accounts payable, accrued expenses, loans, and interest payable. The adjustments are presented through calculations that derive corrected amounts for financial statement line items based on additional information obtained during the audit.

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    Audit and Assurance

    Concept and Application Part 1


    By: NILO N. IGLESIAS, CPA, MBA, REA

    This Photo by Unknown Author is licensed under CC BY-NC


    Solution to
    San Mateo
    Trading

    This Photo by Unknown Author is licensed under CC BY-NC


    Solution to San Mateo Trading
    Audit Problem

    9) Sales per book 4,820,000


    Unrecorded Sales 31,810
    Unshipped Goods (52,830)
    Adjusted Sales 4,798,980
    9) P 4,798,980 - B

    10) Prepayments per Book 438,000


    Advertising Expenses ( 144,000 x 5/12) (60,000)
    Rent Expenses ( 165,000 x 2/3) (110,000)
    Office Supplies Expense ( 129,000 - 53,200) (75,800)
    Prepayments per Audit 192,200
    10 ) P 192,200 - D
    Solution to San Mateo Trading
    Audit Problem

    11) Total Cost of PPE per book 3,045,000


    Additional Charges to Computer bought
    ( 12,500 + 11,300 + 6,520 ) 30,320
    Unrecorded cost of Delivery Equipment
    ( 1,000,000 - 200,000) 800,000
    Adjusted Cost of PPE 3,875,320
    11) P 3,875,320 - D

    12) Total cost of PPE 3,875,320


    Accumulated Depeciation:
    Per Book (936,500)
    Depreciation - Leasehold ( 363,000/5 x 3/12) (18,150)
    Depreciation - Computer (325,000 + 30,320/4 x 7/12 (51,818)
    Adjusted Net Book Value 2,868,852
    12) P 2,868,852 - B
    Solution to San Mateo Trading
    Audit Problem

    13) Accounts Payable per book 523,100


    Unreleased checks 115,000
    Understatement of book disbursement ( 21,000 - 12,000) (9,000)
    Unrecorded purchases 215,000
    Accrued Expenses included in Accounts Payable (37,450)
    Cash advance to President (350,000)
    Advance payment of goods ordered deducted from A/P 87,250
    Adjusted Balance 543,900
    13) P 543,900 - B

    14) Accrued per Book 63,100


    Accrued expenses erroneously recorded in A/P 37,450
    Various accruals (21,200 + 18,150 + 11,990 + 3,180 ) 54,520
    Adjusted Accrued Expenses 155,070
    14) P 155,070 - C
    Solution to San Mateo Trading
    Audit Problem

    15) Security Bank Loans


    39,193 X 183/215 33,359
    167,149 X 107/182 98,269
    93,000 X 26/120 20,150 151,778
    Bonds Payable ( 1,200,000 X 12% X 6/12) 72,000
    Interest Payable, Dec. 31, 2019 223,778
    15) P 223,778 - D
    OPEN FORUM
    QUESTIONS????
    REACTIONS!!!!!

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