Any assistance is greatly appreciated. OCEANVIEW MARINE COMPANY

| March 31, 2017

Question
Not sure where to start to complete the calculations.

Any assistance is greatly appreciated.

OCEANVIEW MARINE COMPANY

5-4

Determination of Performance
Materiality
December 31, 2015

Account Name

2015 Unadjusted
Trial Balance

Cash

1,320,096

Accounts receivable

Performance
Materiality

1,762,682

Allowance for bad debts
Inventory

20,000

116,636 CR
13,524,349

50,000

17,720

2,000

7,916

1,000

100,000

0

Prepaid expenses
Deposits
Land
Automobiles

42,772

Equipment

134,919

3,000

49,028

1,000

Building

525,840

10,000

Accumulated depreciation

256,042 CR

Office equipment

Accounts payable

1,750,831 CR

Accrued liabilities

5,000

257,800 CR

Federal income taxes payable
Notes payable – bank

35,284 CR

5,000

Current portion of long-term debt

5,100,000 CR
5,642 CR

1,000

Long-term debt

409,824 CR

10,000

Common stock

10,000 CR

1,000

2,500,000 CR

10,000

Additional paid-in capital
Combined performance materiality (total of column 3)

119,000

Preliminary judgment about materiality (from w/p 5-2-a)
Multiply preliminary judgment by 3
Total (combined performance materiality must be less than this total)

x 3.00
0

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