User Account

All Pages

Compute the overall effects of these transactions

Assignment Help Financial Accounting
Reference no: EM132969949

Question - The net income of Steinbach & Sons, a landscaping company, decreased sharply during 2016. Mort Steinbach, owner and manager of the company, anticipates the need for a bank loan in 2017. Late in 2016, Steinbach instructs the company's accountant to record $2,000 service revenue for landscape services for the Steinbach family, even though the services will not be performed until January 2017. Steinbach also tells the accountant not to make the following December 31, 2016, adjusting entries:

Sales owed to employees $900

Prepaid insurance that has expired $400

Compute the overall effects of these transactions on the company's reported net income for 2016.

Why is Steinbach taking this action? Is his action ethical? Give your reason, identifying the parties helped and the parties harmed by Steinbach's action.

As a personal friend, what advice would you give the accountant?

Reference no: EM132969949

Questions Cloud

Determine what the pre-tax income would be : BC Co. began operations on January 1, 2019, Determine what the 2020 pre-tax income would be if BC Co. changed to FIFO method of valuing its inventory.
What is the required return for Country Joe : Country Joe's Fish Co. stock has a beta of 0.9. If the required return on the market is 8% and the risk-free rate is 3%, what is the required return for Country
Examine the role international body wto : Examine the role international body WTO plays in international Trade. Write a paragraph essay outlining or discussing the role it plays
What are the main ideas : Country J is a fairly small island nation located in a tropical climate with a population of only around 12 million people. The country has a democratic system
Compute the overall effects of these transactions : Compute the overall effects of these transactions on the company's reported net income for 2016. Why is Steinbach taking this action
Determine the depreciation expense to record : Determine the depreciation expense to record on this machine for 2020. The company applied double declining balance depreciation for this asset
Find potential to improve patient safety : Provide an example of the overuse, underuse, and misuse of medical services (exams, tests, procedures, etc.) that lead to decreased patient safety.
Find what is the? bond yield to? maturity : Pays 12 percent annual? interest, but makes interest payments on a semiannual basis ?(6 percent? semiannually). What is the? bond's yield to? maturity?
Support religious practices for employees : Do you think that organizations should change its organizational structure to support religious practices for its employees?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Construct a indexed analysis

Construct a Vertical/Common- Size Analysis for 2009 Construct a Horizontal/Indexed Analysis

  Find management accounting which is false is

The statement concerning differences between financial and management accounting which is false is? management accounting is less constrained

  What are business benefits of collaboration technologies

What are the main business benefits of the collaboration technologies described in the case? How do these go beyond saving on corporate travel? Provide several specific examples.

  Which terms is defined as the volatility of an investment

Costs 9.95 dollars per stock trade. How much money do you need to buy 100 shares of Ralph Lauren (RL), which trades at 85.13 dollars?

  How much was net income influenced by afs investments year

Assume Cisco purchased all the AFS investments this year. How much was net income influenced by AFS investments this year?

  What is net operating profit after tax

What is it's Net Operating Profit After Tax? A company has an operating profit or EBIT of $725,000 in 2019 and paid interest totalling $51,000.

  How do compute the income attributable to parent

Compute the income attributable to parent. Carlos Bakery owns 60 percent of the stock of Zeus Products acquired several years ago at book value.

  Most popular outdoor apparel companies

South Col is one of the world's most popular outdoor apparel companies. Assume that South Col borrows $2.2 million from Bank of the Midwest and signs a note promising to pay the $2.2 million back in eight months, at which time South Col will also pay..

  What is the current yield and the capital gain yield

Bonuses have an 8 percent coupon rate and pay interest every 6-months. What is the "current yield" and the "Capital gain yield"

  Explain Interest versus dividend income

Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds. Interest versus dividend income

  What was the standard materials price per pound

If the materials price variance was $3,948 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.)

  Enter the impact of each transaction on individual items

Enter the impact of each transaction on individual items of the accounting equation. The company paid $2,300 cash for rent of office space for the month.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd