Auditing Answer 6-24

6-24 (Objective 6-4) The following general ledger accounts are included in the trial balance for an audit client, Jones Wholesale Stationery Store.

Accounts payable

Accounts receivable

Accrued interest expense

Accrued sales salaries

Accumulated depreciation—furniture and equipment

Advertising expense

Allowance for doubtful accounts

Bad debt expense

Cash

Common stock

Depreciation expense—furniture and equipment

Furniture and equipment

Income tax expense

Income tax payable

Insurance expense

Interest expense

Inventory

Loans payable

Notes payable

Notes receivable—trade Prepaid insurance

Property tax expense

Property tax payable

Purchases

Rent expense

Retained earnings

Salaries, office and general

Sales

6-24 a.

CYCLE | BALANCE SHEET ACCOUNTS | INCOME STATEMENT

ACCOUNTS |

SALES AND COLLECTION | Accounts receivable Allowance for doubtful accounts Cash Notes receivable—trade | Bad debt expense Sales |

ACQUISITION

AND PAYMENT | Accounts payable Accumulated depreciation — furniture and equipment Cash Furniture and equipment Income tax payable Inventory Prepaid insurance Property tax payable | Advertising expense Depreciation expense— furniture and equipment Income tax expense Insurance expense Purchases Property tax expense Rent expense Telecommunications expense |

PAYROLL AND PERSONNEL | Cash Accrued sales salaries | Sales salaries expense Salaries, office and general |

INVENTORY AND WAREHOUSING | Inventory | Purchases |

CAPITAL ACQUISITION AND REPAYMENT | Accrued interest expense Common stock Cash Loans payable Notes payable...