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Sunrise Solar Inc SSI is a medium-sized company that is developing solar energy systems for private residences and small businesses It is privately owned with the majority

Sunrise Solar Inc. (SSI) is a medium-sized company that is developing solar energy systems for private residences and small businesses. It is privately owned, with the majority of the shares held by the company’s president, Shu Mingfei. Started up two years ago, to date, it is mostly involved in research and development, but this year it completed its first customer sales and installation. Ms. Shu has engaged your firm to do the current year’s audit because she plans to obtain $20 million in debt financing from outside investors to allow further commercialization of the SSI systems. You are now reviewing SSI’s preliminary general ledger trial balance in order to begin preparing the audit planning. The following is a summary of the accounts that appear in this trial balance as at year end: ACCOUNT ............................ BALANCE DR/(CR) Cash................................. $101,209 Accounts receivable......................... 85,019 Allowance for bad debts...................... (15,000) Inventory, finished goods.................... 900,550 Inventory, work-in-progress.................... 44,666 Inventory, raw material...................... 67,890 Deferred development costs..................... 34,445 Property, plant, and equipment................... 3,700,990 Accumulated amortization, PPE................. . (901,108) Patents, at cost .......................... 1,010,000 Accounts paya

May 22 2020 View more View Less

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