LLP is auditing Dumbledore Manufacturing, Inc. (DMI) for the year ended December 31, 2018. You...
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Accounting
LLP is auditing Dumbledore Manufacturing, Inc. (DMI) for the year ended December 31, 2018. You are the staff auditor responsible for preparing the financial statements. With the unadjusted trial balance provided, you are responsible for the following: 1. Recording any adjusting journal entries based on audit findings on both the trial balance and the AJE report. Dont forget to add a description.
When performing the search for unrecorded liabilities test, it was discovered that an invoice relating to 2018 services was incorrectly excluded from the accounts payable aging. Total additional expense to record dues/subscription/seminars expense #74650 was $1,250 which extrapolated to $16,904. DMI does not want to record an adjusting entry to correct as this is an extrapolated number versus an actual known error.
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