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Accounting Problem Solving Guide

This document contains four accounting questions regarding accounts payable, accounts receivable, payroll processing, and financial reporting. It provides details of transactions and requests the approach to remedy issues. The questions would require email/phone correspondence with external parties and adjustments to internal accounting systems and employee records. Review of attached financial statements is also requested to identify any errors.

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umar
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44 views2 pages

Accounting Problem Solving Guide

This document contains four accounting questions regarding accounts payable, accounts receivable, payroll processing, and financial reporting. It provides details of transactions and requests the approach to remedy issues. The questions would require email/phone correspondence with external parties and adjustments to internal accounting systems and employee records. Review of attached financial statements is also requested to identify any errors.

Uploaded by

umar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Accounting Questions

Accounts Payable
On 01/01/15, the company paid Smith Works $5,000 deposit on check 2343 for an order of materials,
total value of the PO was $15,000. The check was cut as a miscellaneous payment coded to prepaid
expense.
On 03/15/15, the order was shipped complete by Smith Works.
On 03/30/15, Smith Works billed the company $15,000 for the full value of the material on Invoice
1201A.
On 04/15/15, the company processed and paid $15,000 for Invoice 1201A.
What would your approach be via email or phone correspondence to Smith Works and also in
the accounting system to remedy this situation?

Accounts Receivable
A customer was shipped 5 parts worth $2,000 and subsequently invoiced for the full dollar value.
Your sales representative approaches you 10 days later to notify you that those parts were supposed
to be a warranty shipment and the customer should receive them free of charge.
What would your approach be via email or phone to the customer and also in the accountings
system to remedy this situation?

Payroll Processing
Payroll is processed biweekly. An employee approaches you after payday and states that you have
incorrectly applied 10 hours of vacation time to last pay period when it should have been sick time, in
addition, his wage was supposed to increase $2.00 per hour for the same period.
Explain what you would do to remedy the situation, include any thoughts on internal
discussions, processing in ADP, and changes required to employee files.

Financial Reporting

Attached are a set of Dummy Financial Statements from a fictitious company, identify in a bullet point
list any errors you can find with any or all of the financial statements. This question will provide some
insight into the level at which you are able to analyze financial statements. Do not spend more than
20-30 minutes on this question

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