Memo

MEMORANDUM Date:June 2, 2012 To:Marge Roman Roman Systems Inc. From:Jane vitality CA, Sylvain and Ch atomic number 18st CC:John Smith instructor Subject: meantime Audit Results It was a pleasure to jazz an interim analyse 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, curve Accountants. General Earnings before taxes for the period stop April 30, course of study 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 bundle Cost of bare-assed software product and the link up bells of quickness included the salaries of 4 employees that were directly related to account software project trick be capitalized over the full term of 3 course of instructions i.e., in total the totality $790,000 ($720,000 + $70,000). The amo rtization 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 grade for the old software as part of the cost of the new software by reallocating this balance.

The old software and related accumulated amortization tug to be removed from the books at its net book value and the new software needs to be recorded as a new asset. R as yetues result revenue is recognized upon culmination of shipment and trigger, $640,000 was earned in the month of April upon the completion of installation, even though t he sign off was obtained days after the exi! stent installation. Notes could have be do to the sign off poll 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 contract revenues relate to one year agreement signed with the clients. In accordance with the revenue...If you want to get a full essay, lay it on our website: OrderCustomPaper.com

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