Encounter a problematic transaction

Assignment Help Financial Accounting
Reference no: EM13793230

In the process of closing the company books, you encounter a problematic transaction. One of the company’s customers was charged twice for the same project materials, resulting in a $1,000 overcharge. You immediately notify the controller, whose response is, “Let it go; it happens often. It’ll probably balance out on some future transaction.” What should you do?

Reference no: EM13793230

Questions Cloud

Separate but parallel taxation system : As a separate but parallel taxation system AMT presents a second set of issues and challenges. Discussing the topic and exchanging ideas of how to address potential conflicts will better prepare you to advise clients.
Convergence-potential international reporting obligations : It is easy to dismiss discussions of foreign activities by affirming that your plans never include working for a publicly traded company with international operations or dealing with clients of major accounting firms that might have such issues. But ..
What was the consolidated net asset : Chapel Hill Company had common stock of $350,000 and retained earnings of $490,000. Blue Town Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2011, Blue Town issued 34,000 shares of common stock with a $12 par value..
Accounts payable so essential to ensuring positive cash flow : Why is careful management of accounts receivable and accounts payable so essential to ensuring positive cash flow?
Encounter a problematic transaction : In the process of closing the company books, you encounter a problematic transaction. One of the company’s customers was charged twice for the same project materials, resulting in a $1,000 overcharge. You immediately notify the controller, whose resp..
Construct a monthly cash budget-require external financing : Using the information provided, construct a monthly cash budget for October through December 2011. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing? Does the December 31, 2011, estimated external financing equ..
Affected by the stock-appreciation rights plan : On December 31, 2010, Beckford Company issues 150,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. Prepare a schedule that shows ..
Assume that the expropriation is extraordinary : Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Lennon Industries as of December 31, 2014. Assume that the expropriation is extraordinary.
Calculate the gross profit percentage-what is gross profit : Explain the difference between FOB Destination and FOB Shipping Point. What is Gross Profit? How should you calculate the Gross Profit Percentage?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Conversion-personal use to business use

Alice starts a taxi service and decides to use her personal car as the first taxi in her new business. the car will be used solely for business purposes. The car had an original cost of $20,000 and fair market value at the date of conversion to busin..

  How would you reply to the ceo suggestion

Assume you are the CEO of Declining Corporation, How would you reply to the CEO's suggestion? Summarize your response including why you opted for or against the adoption IFRS.

  Decision on closure of one of the units with the help of

decision on closure of one of the units with the help of decrease in net income.the most recent monthly income

  Prepare a capital statement for the partnership

Two separate business organizations, a partnership and a corporation, were formed on January 1, 2001.

  Q the cash account for santiago co on 31st may 2009

q the cash account for santiago co. on 31st may 2009 indicated a balance of 15515.00. the march bank statement shown an

  Compute the revenue recognized, construction costs expensed

Compute the revenue recognized, construction costs expensed, and income earned for each year using the percentage of completion method. Explain the potential risks associated with this accounting method and discuss why an analyst would be interes..

  Determine deer parks net income for 2011

Determine Deer Park's net income for 2011 and prepare a balance sheet for Deer Park as of December 31, 2011.

  What kind of duty agent own to principle

Are the approaches you described in answer to question (2) mutually exclusive, or can they be used to complement each other? Explain?

  Journalize the transactions and the adjusting entries

Journalize the transactions and the adjusting entries - Recorded depreciation on the remaining truck. It has an estimated residual value of $15,000 and an estimated useful life of 10 years.

  Changes in operating assets and liabilities

Adjust net income of $290,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities.

  Venezuela co is building a new hockey arena at a cost of

venezuela co. is building a new hockey arena at a cost of 2500000. it received a down payment of 500000 from local

  What are the ending capital balances for each partner

The net income for the year is $30,000. What are the ending capital balances for each partner?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd