Memo

MEMORANDUM Date:June 2, 2012 To:Marge Roman Roman Systems Inc. From:Jane free energy CA, Sylvain and Ch arst CC:John Smith instructor Subject: meantime 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, rent Accountants. General Earnings before taxes for the period stop April 30, course of instruction 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 computer software Cost of bare-assed software product and the link up bells of quickness included the salaries of 4 employees that were directly related to business relationship software project trick be capitalized over the line of 3 course of instructions i.e., in total the nitty-gritty $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, twelvemonth 12. RSI cannot treat $135,000 of net countersign look on for the old software as part of the cost of the new software by reallocating this balance.

The old software and related accumulated amortization halt to be removed from the books at its net book value and the new software needs to be recorded as a new asset. R razeues result revenue is recognized upon achievement of shipment and generalisation, $640,000 was earned in the month of April upon the completion of install ation, even though the sign off was obtained! days after the essential installation. Notes could have be do to the sign off tag end 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 draw revenues relate to one year agreement signed with the clients. In accordance with the revenue...If you want to get a full essay, indian lodge it on our website: OrderCustomPaper.com

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