The Auditors of Mikel's Shops Obtained the Following Information When

question 84

Essay

The auditors of Mikel's Shops obtained the following information when performing cutoff testing procedures during their observation of Mikel's physical inventory count at December 31,2009:
When comparing the cutoff information to the sales records,the auditors found that all these shipments were recorded as 2011 sales.The goods shipped on bills of lading 1235 and 1236 were not counted in the inventory,but the goods on bill of lading 1237 and 1238 were included.
Required:
Prepare the appropriate journal entry to correct the cutoff error. $$\begin{array} { | l | r | r | r | r | } \hline \text { Bill of Lading Number } & 1235 & 1236 & 1237 & 1238 \\\hline \text { Date } & 12 / 31 / 11 & 12 / 31 / 11 & 1 / 2 / 11 & 1 / 2 / 11 \\\hline \text { Sales price } & \$ 12,000 & \$ 4,500 & \$ 18,000 & \$ 16,000 \\\hline \text { Cost of goods } & \$ 9,000 & \$ 3,000 & \$ 12,000 & \$ 12,000 \\\hline\end{array}$$

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Definitions:

Total Return

The overall gain or loss on an investment over a specified time period, including interest, dividends, and capital gains.

Capital Gain Yield

The rate of return on an investment based on the increase in its market value over the original purchase price, excluding dividends or interest.

Income Yield

The income return on an investment, typically expressed as a percentage of the investment’s cost or current market value.

Rate of Total Return

The percentage gain or loss on an investment over a specified period, considering both price appreciation and dividends or interest.