User Account

All Pages

Compute the overall effects of transactions on the company

Assignment Help Financial Accounting
Reference no: EM132512331

The net income of Steinbach & Sons, a landscaping company,decreased sharply during 2015. Mort Steinbach, owner and manager of the company, anticipates the need for a bank loan in 2016. Late in 2015, Mort 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 2016. Mort also tells the accountant not to make the following December 31, 2015, adjusting entries:

?Salaries owed to employees           ???$900

?Prepaid Insurance that has expired??        $400

Questions:

Question 1) Compute the overall effects of these transactions on the company's reported income for 2015.

Question 2) Why is Mort taking this action? Is he action ethical? Give your reason, identifying the parties helped and the parties harmed by the actions.

Question 3) As a personal friend, what advice would you give the accountant?

Reference no: EM132512331

Questions Cloud

Expatiate on the two theories that argue for each theory : Corporate financial reporting theories are discussed based on two schools of thought. What are they? Expatiate on the two theories that argue for each theory
Market equilibrium of the exchange rate : Ceteris paribus, what will happen to the market equilibrium of the exchange rate if foreigners' demand for Gibson guitars increases
What would happen to the market for bonds : What would happen to the market for bonds if a law were passed that set a minimum price on bonds that was above the equilibrium price?
Price of bonds decreases : When the price of bonds decreases, the interest rate rises. Explain.
Compute the overall effects of transactions on the company : Why is Mort taking this action? Is he action ethical? Give your reason, identifying the parties helped and the parties harmed by the actions.
What does this tell you regarding hypothetica : What does this tell you regarding Hypothetica's likely output gap? Illustrate it using an AS-AD diagram, and briefly explain your diagram.
Logically extend the functionality of the Maze Game : You are required to logically extend the functionality of the Maze Game introduced during lectures, via the modification of code base as well as documentation
Calculate the simple money multiplier : (i) Use a formula to calculate the simple money multiplier, show all steps involved in the calculation.
What vernieri ending inventory balance under lifo inventory : What is Vernieri's ending inventory balance under the LIFO inventory cost flow assumption? Air Johannson Sneakers Available and Sold

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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