Appraisal of financial statements

Reference no: EM1311013

Appraisal of Financial Statements.

The president of your company paid you a visit today. He believes that the financial statements misrepresent the financial condition of the company and that you as the accountant, have to rectify these mistakes. As an example, he pointed out that the land and building have a carrying value on the books of $350,000 but were recently appraised for insurance purposes at $900,000. In addition, he knows for a fact that company has generated large amounts of goodwill over the years as the result of its dependable service to customers. Yet there is no goodwill listed in the asset section of the balance sheet. He has asked you to estimate the amount of goodwill and record it on the books. He also wants you to increase the value of all plant assets to their appraised values. He stresses the importance of these changes to the company's ability to obtain a much needed bank loan next week.

Reference no: EM1311013

Questions Cloud

Depreciation is computed to the nearest month : Depreciation is computed to the nearest month and Bundy uses the midyear convention

The work done by an object to lift another object : An object is lifted vertically 2m and held there. If the object weighs 30N, how much work was done in lifting it. Describe it briefly.

Journal entries to record depreciation of truck : Journal entries to record depreciation where the life of the truck is not extend and Prepare the journal entries to record the cost of the upgrade

Determine the work done by an object : Mattwe pulls his little sister sarah in a sled on an icy surface, with a force of 60 N at an angle of 37 ° upward from the horizontal. If he pulls her a distance of 12m, then determine the work done by matthew?

Appraisal of financial statements : Appraisal of Financial Statements and also wants you to increase the value of all plant assets to their appraised values

Determination of current stock price also capital gains : Determination of current stock price also capital gains and The constant growth model cannot be used because the growth rate is negative

Velocity and the potential energy of an object : Define the velocity and the potential energy of an object briefly.

Stock valuation beneath equilibrium situation : Stock valuation beneath equilibrium situation and Assuming the stock market is efficient and the stocks are in equilibrium

Required power by an object to lift another object. : Calculate the power required by an object to lift another object

User Account

All Pages