The ending general ledger balance of $568,000 in notes payable for the Kolman Production Company is made up of 20 notes to nine different payees. The notes vary in duration anywhere from 30 days to two years, and in amounts from $10,000 to $50,000. In some cases, the notes were issued for cash loans; in […]
1. Explain the relationship between tests of the acquisition and payment cycle and tests of accounts payable. Give specific examples of how these two types of tests affect each other. 2. In testing the cutoff of accounts payable at the balance sheet date, explain why it is important that auditors coordinate their tests with the […]
Makoto Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk records the date on the shipping document. The last shipment made in the fiscal year ended August 31, 2019, was […]
