In Reviewing the Books of Unger Retailers Inc

question 40

Essay

In reviewing the books of Unger Retailers Inc.,the auditor discovered certain errors that had occurred during 2013 and 2014.No errors were corrected during 2013.The errors are summarized below:
(a)Beginning merchandise inventory (January 1,2013)was understated by $8,640.
(b)Merchandise costing $2,400 was sold for $4,000 to B.J.Taylor on December 29,2013,but the sale was recorded in 2014.The merchandise was shipped F.O.B.shipping point and was not included in ending inventory.Unger uses a periodic inventory system.
(c)A two-year fire insurance policy was purchased on May 1,2013,for $5,760.The entire amount was debited to Prepaid Insurance.No adjusting entry was made in 2013 or 2014.
(d)A one-year note receivable of $9,600 was held by Unger beginning October 1,2013.Payment of the 10 percent note and accrued interest was received upon maturity.No adjusting entry was made on December 31,2013.
(e)Equipment with a ten-year life was purchased on January 1,2013,for $39,200.No depreciation expense was recorded during 2013 or 2014.Assume that the equipment has no salvage value and that Unger uses the straight-line method for recording depreciation.
Prepare journal entries to correct each of these independent situations.Assume that the nominal accounts for 2014 have not yet been closed into the income summary account.

Understand the concept of the comparison universe in mutual fund evaluation.

Identify factors affecting mutual fund performance, including beta adjustments during market advances or declines.

Calculate geometric and arithmetic average returns.

Understand the concept of serial correlation in mutual funds and hedge funds.

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Definitions:

PCA Seal

The Production Code Administration's approval seal, indicating that a film complied with the Hollywood Production Code's moral standards from 1934 to the late 1960s.

Elia Kazan

A distinguished director and producer known for his impactful works in film and theater in the mid-20th century.

HUAC Testimony

Testimonies given before the House Un-American Activities Committee, particularly during the McCarthy era, often involving allegations of communist activity or sympathies in the U.S.

Points on the Gross

A contractual agreement in the entertainment industry whereby individuals receive a percentage of the gross earnings of a project.