Homework answers / question archive / 1)The detailed statement of comprehensive income of Shox (Pty) Ltd for year end 31 March 2020 contains the following account headings: Salaries R10 186 241 Your fellow trainee (who thinks he knows everything!) tells you that the assertions pertaining to this account heading are as follows: Valuation: salaries are presented at the gross amount less deductions Existence: the salary earners to whom the R10 186 241 was paid all existed at financial position date

1)The detailed statement of comprehensive income of Shox (Pty) Ltd for year end 31 March 2020 contains the following account headings: Salaries R10 186 241 Your fellow trainee (who thinks he knows everything!) tells you that the assertions pertaining to this account heading are as follows: Valuation: salaries are presented at the gross amount less deductions Existence: the salary earners to whom the R10 186 241 was paid all existed at financial position date

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1)The detailed statement of comprehensive income of Shox (Pty) Ltd for year end 31 March 2020 contains the following account headings: Salaries R10 186 241 Your fellow trainee (who thinks he knows everything!) tells you that the assertions pertaining to this account heading are as follows: Valuation: salaries are presented at the gross amount less deductions Existence: the salary earners to whom the R10 186 241 was paid all existed at financial position date. Completeness: all salaries paid by the company in respect of the financial year are included in the amount Obligation: the company has an obligation to pay the amounts making up the total of R10 186 241. Disclosure: the names of all salary earners have been disclosed in the financial statements. 1 Required: Discuss whether you agree with your fellow trainee. Justify your answer by explaining each assertion identified and providing the correct alternative.

2)Jett Bungle performed the following procedures during the audit of Dalto (Pty) Ltd, a large manufacturing company. 1. During the inventory count he test counted a sample of inventory items selected from the clients inventory list and compared the quantities counted to those recorded on the client's inventory list. 2. He arranged for the financial manager to obtain a positive confirmation from Dalto (Pty) Ltd's major overseas debtor. The debtor sent an email confirming the amount owed to the financial manager who forwarded it to Jett Bungle. 3. He obtained a bank confirmation relating to the client's bank account (overdraft) direct from the bank. On previous occasions the confirmation from the bank had been incorrect but only by small amounts. 4. He inspected a sample of Dalto (Ply) Ltd's delivery notes for the signature of Dalto (Ply) Ltd's despatch clerk indicating that the goods had been checked against the internal sales order, as well as the signature of the customer's goods received clerk acknowledging receipt of the goods delivered. 5. He observed the offloading and receiving of deliveries by suppliers, to determine whether the goods were counted by Dalto (Pty) Ltd's receiving clerks. Required: Classify and explain each of the above in terms of its source of audit evidence.

3)Arthur Industries entered into the following transactions during the month of June. A. Purchased supplies for $4,100 cash. B. Paid $4,480 for salaries and wages for the month of June. C. Paid $510 in advance for July rent. D. Provided $13,100 in services on account E. Paid $1,500 on accounts payable. F. Received $190 from customers as deposits for future services. G. Received a bill for $360 from the plumber who repaired a broken pipe in the restrooms, but will not pay the bill until July H. Purchased equipment for cash of $780. For each of the transactions, prepare journal entries. (If no entry is required for a transaction/event, select "No Journal Ent Required" in the first account field.) View transaction list Journal entry worksheet Record the entry for $190 cash received from customers as deposits for future pet sitting services. Note: Enter debits before credits. Transaction General Journal Debit Credit F
Journal entry worksheet Record the entry for bill of $360 for plumber services for repairing pipe during the month. The bill will not be paid until July Note: Enter debits before credits. Transaction General Journal Debit Credit G.
Journal entry worksheet.