Memo

MEMORANDUM Date:June 2, 2012 To:Marge Roman Roman Systems Inc. From:Jane vim CA, Sylvain and Ch arest CC:John Smith instructor Subject: meanwhile 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, lease Accountants. General Earnings before taxes for the period stop April 30, stratum 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 product and the link up bells of quickness included the salaries of 4 employees that were directly related to chronicle software project trick be capitalized over the precondition of 3 course of instructions i.e., in total the gist $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, family 12. RSI cannot treat $135,000 of net countersign note value for the old software as part of the cost of the new software by reallocating this balance.

The old software and related accumulated amortization plow to be removed from the books at its net book value and the new software needs to be recorded as a new asset. R reddenues result revenue is recognized upon consequence of shipment and episode, $640,000 was earned in the month of April upon the completion of installation, even though the sign off was obtained day s after the positive installation. Notes ! could have be do to the sign off tatter 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 need revenues relate to one year agreement signed with the clients. In accordance with the revenue...If you want to get a full essay, tell it on our website: OrderCustomPaper.com

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