Hydromaint Year Essay -- Essays Papers

Hydromaint YearDuring Hydromaints audit, you and Pam had a number of discussions. You, Pam, and Mike Johnson argon generally satisfied that the accounts ar in accordance with GAAP and are supported by underlying facts. Pam tested Jerrys pension accounting (which she run aground to be correct) by preparing a pension worksheet based on selective information contained in the actuarys reportCurrent service cost $1,064,043ABO at 12/31/X7 2,840,000Interest on the PBO8%Interest on plan assets8Jerry has agreed to adjust his accounts and none disclosures for all department of corrections proposed by C & L. Pam raised a number of questions that may conduct adjustment. No other matters were found to be questionable. Pams questions are as follows1. chronicle for R&D does not appear to be in entry with SFAS No. 2. The work is of the nature described in SFAS No. 2, para. 9, and is not being conducted for others under contract.2. Pam also noted that countenance contracts are given ove r on all sales of pumps and valves. LS-Pump/Valve and now Hydromaint, live with accounted for warranties only on the costs to make good when warranty claims were actually filed by customers. If warranty costs had been recognized as sales were made, the liability at January 1, 20X7, would have been $500,000. Pam noted, however, that Nick Riley and Ray Ballard were aware of the warranty contracts and took these into account in valuing the accomplishment of LS-Pump/Valve. Nick and Ray did ...