1. Provide 3 examples of telltale hints that are indications of a cover-up of fraudulent activity in

1. Provide 3 examples of telltale hints that are indications of a cover-up of fraudulent activity in the accounting records 2.
» #3)             Prepare and income statement, statement of owners equty     and balance sheet for Rabid Insect based on the information below    Salary Expense      28,500.00   1. Provide 3 examples of telltale hints that are indications of a cover-up of fraudulent activity in the accounting records 2. #3)             Prepare and income statement, statement of owners equty     and balance sheet for Rabid Insect based on the information below    Salary Expense      28,500.00          Rent Expense        14,250.00          Insurance Expense        9,500.00          Depreciation Expense        4,750.00          Miscellaneous Expense        1,900.00          Sales Returns/Allowance        5,000.00          Sales Discounts        7,500.00          Cost of Goods Sold    142,500.00          Accts Payable        30,000.00          Note Payable      solve                      Equipment     400,000.00            Accum Depreciation   (160,000.00)            Accts Receivable      20,000.00          Mdse Inventory      60,000.00          Prepiaid Insurance      10,000.00          Cash      100,000.00                        Capital 1/1 (beginning)    187,500.00          Drawing        (5,415.00)          Cost of Goods Sold    142,500.00                        Intereest Expense        1,805.00          Tax Expense          7,220.00          Sales        250,000.00   4) Three identical units of merchandise were purchased during July, as follows:                 Date Product Basic H Units  Cost        3-Jul Purchase 1 35       10 Purchase 1 36       24 Purchase 1 37       Total   3 $108                       Average cost per unit   $36                     Assume one unit sells on July 28 for $45.                       Determine the gross profit, cost of merchandise sold, and ending inventory on July 31  using the (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods. 5) Prepare a bank reconciliation for XYZ on 11/30                     Balance per books 11/30 9,920         Balance per bank 11/30 12,170         Deposit in Transit 1,500         Outstanding Checks 1,710         Bank Service Charge 190         Note Collected by bank 2,230 6) CBC has accounts receivable at year end    620,000.00       Balance in allowance for doubtful accts     12,400.00 credit balance   Sales on account for the year were   868,000.00       The company uses the % of receivables allownace method for bad debt     Prepare the journal entry for bad debt expense  at year end if 3% is the expected bad debt    

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