Scribd Logo
Upload

Welcome to Scribd!

  • Apollo Shoes, Inc.: Prepared by Reviewed by

    Uploaded by

    Arista Yuliana Sari
    330 views3 pages
    The document lists proposed adjusting journal entries for Apollo Shoes for the year ended December 31, 2014. Some of the key adjustments include recording unrecorded liabilities for accounts payable, wages payable, interest payable and bonuses payable totaling over $14 million. Other adjustments relate to improper recording of inventory sales, uncollectible accounts, inventory obsolescence reserves, prepaid insurance amortization, depreciation recalculation, accrued income taxes, and dividends payable. The net effect of the adjustments is to increase net income by over $22 million and increase total liabilities and equity by over $28 million.

    Original Description:

    Original Title

    P3 WEEK 12 WUP 8

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document lists proposed adjusting journal entries for Apollo Shoes for the year ended December 31, 2014. Some of the key adjustments include recording unrecorded liabilities for accounts payable, wages payable, interest payable and bonuses payable totaling over $14 million. Other adjustments relate to improper recording of inventory sales, uncollectible accounts, inventory obsolescence reserves, prepaid insurance amortization, depreciation recalculation, accrued income taxes, and dividends payable. The net effect of the adjustments is to increase net income by over $22 million and increase total liabilities and equity by over $28 million.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    330 views3 pages

    Apollo Shoes, Inc.: Prepared by Reviewed by

    Uploaded by

    Arista Yuliana Sari
    The document lists proposed adjusting journal entries for Apollo Shoes for the year ended December 31, 2014. Some of the key adjustments include recording unrecorded liabilities for accounts payable, wages payable, interest payable and bonuses payable totaling over $14 million. Other adjustments relate to improper recording of inventory sales, uncollectible accounts, inventory obsolescence reserves, prepaid insurance amortization, depreciation recalculation, accrued income taxes, and dividends payable. The net effect of the adjustments is to increase net income by over $22 million and increase total liabilities and equity by over $28 million.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    A-5

    Apollo Shoes, Inc.


    Prepared by Group 1
    Reviewed by Darlene Wardlaw
    Proposed Adjusting Journal Entries (Score Sheet)
    For Year Ended 31 December 2014

    Income
    Balance Sheet
    Statement
    Increase Increase Increase Increase
    (Decrease) (Decrease) (Decrease) (Decrease)
    Net Income Assets Liabilities Equity
    Improperly recorded purchase of stock 12/26/14
    Investment Income $ 330.375,80
    Cash $ (330.375,80)
    Improper sale to Mall Warts December 28, 2014
    Sales $ 5.765.081,85
    Inventory $ 3.169.145,10
    Accounts Receivable $ (5.765.081,85)
    Cost of Good Sold $ (3.169.145,10)
    Adjustment to reflect uncollectible accounts
    Bad Debt Expense $ 13.589.969,19
    Allowance for Doubtful Accounts $ 13.589.969,19
    Adjustment to reflect reasonable reserve needed
    Cost of Good Sold $ 7.823.806,26
    Miscellaneous income $ 2.166.000,00
    Reserve for Inventory Obsolescence $ 9.989.806,26

    N
    Recalculated Amortization
    Insurance Expense $ 897.004,99
    Prepaid Insurance $ (897.004,99)
    Proper classification of accumulated depreciation
    & recalculated depreciation
    Depreciation Expense $ 74.021,00
    Accumulated Depreciation $ (74.021,00)
    Maintenance Expense $ 50.408,00
    Building and Land Improvements $ (50.408,00)
    Accumulated Depreciation $ 1.260,20
    Depreciation Expense $ (1.260,20)
    Unrecorded Liabilities
    Cost of Good Sold $ 8.434.889,09
    Account Payable $ 8.434.889,09
    Unrecorded Liabilities
    Utilities $ 15.216,88
    Account Payable $ 15.216,88
    Unrecorded Liabilities
    Legal and Profesional Expense $ 3.750.000,00
    Account Payable $ 3.750.000,00
    Reclassification of debt
    Notes Payable-Non Current $ (12.000.000,00)
    Current Portion Long-Term Debt $ 12.000.000,00
    Unaccrued wages for the final two days of the year
    Administrative Wages Expense $ 181.702,00
    Warehouse Salaries $ 54.470,00
    Wages Payable $ 236.172,00
    Record Interest Expense Accrual
    Interest Expense $ 419.920,90
    Interest Payable $ 419.920,90
    Record Bonus Expense
    Bonus expense $ 450.000,00
    Bonuses Payable $ 450.000,00
    Write off of intangible asset
    Legal & Professional Expense $ 53.840,59
    Other Noncurrent Assets $ (53.840,59)
    Dividends Accrual
    Dividends $ (860.000,00)
    Dividends Payable $ 860.000,00
    Accrued Income Taxes
    Income Tax Receivable $ 3.615.000,00
    Income Tax Expense – Federal $ (1.773.000,00)
    Income Tax Expense – State $ (1.842.000,00)

    Net effect before taxes $ 37.271.301,25 $ 23.194.448,52 $ 14.166.198,87 $ (860.000,00)


    Reduction in income taxes (net effect x 0.40)
    Income tax expense $ 14.908.520,50
    Income taxes payable $ 14.908.520,50
    Current-year effects $ 22.362.780,75 $ 23.194.448,52 $ 29.074.719,37 $ (860.000,00)

    You might also like