Account Cash Accounts Receivable Allowance for Doubtful Accounts Short-Term Marketable Securities Inventory Prepaid Rent Prepaid Insurance Long-Term
Next, analyze the fictitious financial statements and locate any odd or unexpected relationships among the elements of the statements that could indicate fraud.
| Account | Year | 2015 | Year | 2014 |
| DR | CR | DR | CR | |
| Cash | 9000 | 10000 | ||
| Accounts Receivable | 36000 | 20000 | ||
| Allowance for Doubtful Accounts | 1000 | 5000 | ||
| Short-Term Marketable Securities | 10000 | 12000 | ||
| Inventory | 40000 | 25000 | ||
| Prepaid Rent | 12000 | 24000 | ||
| Prepaid Insurance | 6000 | 12000 | ||
| Long-Term Marketable Securities | 40000 | 50000 | ||
| Land Held for Future Use | 100000 | 100000 | ||
| Debt Service Fund | 50000 | 50000 | ||
| Land in Use | 120000 | 120000 | ||
| Buildings | 800000 | 700000 | ||
| Accumulated Depreciation – Buildings | 205000 | 200000 | ||
| Machinery and Equipment | 250000 | 250000 | ||
| Accumulated Depreciation – Mach and Equip | 51000 | 50000 | ||
| Copper Mine | 300000 | 300000 | ||
| Accumulated Depletion – Copper Mine | 76000 | 75000 | ||
| Franchise | 25000 | 25000 | ||
| Copyright | 30000 | 30000 | ||
| Trademark | 10000 | 10000 | ||
| Patent | 75000 | 75000 | ||
| Long-term Deferred Tax Asset | 58000 | 60000 | ||
| Long-term Pension Asset | 50000 | 100000 | ||
| Accounts Payable | 35000 | 17000 | ||
| Income Taxes Payable | 26000 | 63000 | ||
| Note Payable (due in 6 months) | 150000 | 50000 | ||
| Interest Payable | 30000 | 25000 | ||
| Mortgage Payable (1/20 due this year) | 400000 | 415000 | ||
| Note Payable (due in 2 years) | 150000 | 150000 | ||
| Common Stock | 200000 | 100000 | ||
| Paid-in Capital in Excess of Par–Common | 333000 | 300000 | ||
| Preferred Stock | 50000 | 50000 | ||
| Paid-in Capital in Excess of Par–Preferred | 100000 | 100000 | ||
| Retained Earnings | 200000 | 200000 | ||
| Other Accumulated Comprehensive Income | 25000 | 25000 | ||
| Treasury Stock | 10000 | 10000 | ||
| Sales Revenue | 650000 | 778000 | ||
| Sales Discounts | 10000 | 5000 | ||
| Sales Expenses | 155000 | 150000 | ||
| General Administrative Expenses | 260000 | 250000 | ||
| Cost of Goods Sold | 180000 | 200000 | ||
| Interest Revenue | 10000 | 20000 | ||
| Dividend Revenue | 12000 | 15000 | ||
| Interest Expense | 30000 | 22000 | ||
| Gain on Sale of Equipment | 2000 | 7000 | ||
| Loss on Sale of Investments | 15000 | 5000 | ||
| Income Tax Expense | 13000 | 15000 | ||
| Depreciation Expense | 12000 | 15000 | ||
| Totals | 2706000 | 2706000 | 2645000 | 2645000 |
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