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During the Course of the Year 2 Audit of Smithsone

question 56

Essay

During the course of the year 2 audit of Smithsone Company,the auditor discovered the following situations that may or may not require an adjusting journal entry.Each audit finding is independent of any of the other findings.Select the account or accounts that would comprise the adjusting journal entry,if required,to correct the audit finding.Accounts may be used once,more than once,or not at all. $During the course of the year 2 audit of Smithsone Company,the auditor discovered the following situations that may or may not require an adjusting journal entry.Each audit finding is independent of any of the other findings.Select the account or accounts that would comprise the adjusting journal entry,if required,to correct the audit finding.Accounts may be used once,more than once,or not at all. \begin{array}{l} \text { Selection list for amount }\\ \begin{array} { l l l } \text { Cash } & \text { Accrued liabilities } & \text { Interest expense } \\ \text { Accounts receivable } & \text { Common stock } & \text { Other income } \\ \text { Other current assets } & \text { Revenues } & \text { Accumulated depreciation } \\ \text { Property and } & \text { Allowance for doubtful } & \text { Disclosure but no entry } \\ \text { equipment } & \text { accounts } & \text { required } \\ \text { Accounts payable } & \text { Operating expenses } & \begin{array} { l } \text { No entry or disclosure } \\ \text { required } \end{array} \end{array} \end{array}$ $\begin{array}{l}\text { Selection list for amount }\\\begin{array} { l l l } \text { Cash } & \text { Accrued liabilities } & \text { Interest expense } \\\text { Accounts receivable } & \text { Common stock } & \text { Other income } \\\text { Other current assets } & \text { Revenues } & \text { Accumulated depreciation } \\\text { Property and } & \text { Allowance for doubtful } & \text { Disclosure but no entry } \\\text { equipment } & \text { accounts } & \text { required } \\\text { Accounts payable } & \text { Operating expenses } & \begin{array} { l } \text { No entry or disclosure } \\\text { required }\end{array}\end{array}\end{array}$

Definitions:

Lorenz Curve

A graphical representation used to illustrate the distribution of income or wealth within a population, indicating inequality.

Equally Distributed

A situation or condition in which resources, wealth, or opportunities are shared evenly amongst all participants or members of a group.

Program

A set of planned activities or instructions designed to achieve a specific outcome, which can be implemented through software in computing or policy in government and organizations.

Lyndon Johnson

The 36th President of the United States, serving from 1963 to 1969, known for his domestic policies like the Great Society and civil rights advancement.