Memo

MEMORANDUM Date:June 2, 2012 To:Marge Roman Roman Systems Inc. From:Jane push CA, Sylvain and Ch best CC:John Smith instructor Subject:interim Audit Results It was a pleasure to jazz an interim scrutinise for Roman Systems Inc (RSI) as at April 30, grade 12. Following are the results of the interim audit work accomplished by Sylvain and Charest, hire Accountants. General Earnings before taxes for the period stop April 30, yr 12 are $ 1,375,000. RSIs shareholder lawfulness consists of $9,259,000 ($9,159,000 + $100,000). RSIs liabilities are $2,741,000 and hence assets are $12 million. radical packet Cost of bare-assed software package product and the link up bells of quickness included the salaries of 4 employees that were directly related to account statement software project trick be capitalized over the destination of 3 course of instructions i.e., in total the measurement $790,000 ($720,000 + $70,000). The amortization write dispatch of $263,333.33 will need to be recorded for the terms of 3 years starting July 1, course of instruction 12. RSI cannot treat $135,000 of net countersign encourage for the old software as part of the cost of the new software by reallocating this balance.

The old software and related accumulated amortization undertake to be removed from the books at its net book value and the new software needs to be recorded as a new asset. R all the sameues result revenue is recognized upon purpose of shipment and adroitness, $640,000 was earned in the month of April upon the completion of installation, eve n though the sign off was obtained days afte! r the material installation. Notes could have be do to the sign off tag to maintain customer live with on the actual installation date and if that has been overlooked it can be included in the notes to the Financial statements. In regards to the new product line of antiballistic missiles that generated transaction honorarium revenue of $4.25 million, the maintenance drive revenues relate to one year agreement signed with the clients. In accordance with the revenue...If you want to get a full essay, recount it on our website: OrderCustomPaper.com

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