Joshua thorp opened laser co on january 1 2011 at the end

Assignment Help Accounting Basics

Reference no: EM13598267

Joshua Thorp opened Laser Co. on January 1, 2011. At the end of the first year, the business needed additional funds. On behalf of Laser, Joshua applied to Vermont National Bank for a loan of $500,000. Based on Laser financial statements, which has been prepared on a cash basis, the Vermont National Bank loan officer rejected the loan as too risky. After receiving the rejection notice, Joshua instructed his accountant to prepare the financial statements on an accrual basis. These statements included $90,000 in accounts receivable and $35,000 in accounts payable. Joshua then instructed his accountant to record ad additional $25,000 of accounts receivable for commissions on property for which a contract had been signed on December 28th, 2011. The title to the property is to transfer on January 5th, 2012, when an attorney formally records the transfer of the property to the buyer. Joshua the applied for a $500,000 loan from NYC Bank, using the revised financial statements. On this application, Joshua indicated that he had not previously been rejected for credit. Discuss the ethical and professional conduct of Joshua Thorp in applying for the loan from NYC Bank.

Reference no: EM13598267

Questions Cloud

A revenue that differs between alternatives and makes a : . the transfer price approach that will result in the largest contribution margin to the buying division is the a.

The average health care costs per year for a sample of us : the average health care costs per year for a sample of u.s. cities 50000200000 population are 586. u.s. department of

Assume that you deposited 100000 in a savings account : assume that you deposited 100000 in a savings account paying an interest of 12 per year compounded monthly. you wish to

A retail store credited the sales revenue account for the : a retail store credited the sales revenue account for the sales price and the amount of sales tax on sales. if the

Joshua thorp opened laser co on january 1 2011 at the end : joshua thorp opened laser co. on january 1 2011. at the end of the first year the business needed additional funds. on

Wallace corporation issued 3000 shares of 10 par value : wallace corporation issued 3000 shares of 10 par value common stock in exchange for a giant water slide valued at

Greengrass company purchased a master mulching machine for : greengrass company purchased a master mulching machine for 240000 with a 5 year life and a 15000 salvage value.

A company uses the fifo method for inventory costing during : a company uses the fifo method for inventory costing. during a period a production department had 20000 units in

Jackson company wants to sell a building that is no longer : jackson company wants to sell a building that is no longer needed and consolidate some of their facilities. they paid

User Account

All Pages