Reference no: EM131217055
Mike Lynch is the manager of an upstate New York regional office for an insurance company. As the regional manager, his compensation package comprises a base salary, commissions, and a bonus when the region sells new policies in excess of its quota. Mike has been under enormous pressure lately, stemming largely from two factors. First, he is experiencing a mounting personal debt due to a family member's illness. Second, compounding his worries, the region's sales of new policies have dipped below the normal quota for the first time in years.
You have been working for Mike for two years, and like everyone else in the office, you consider yourself lucky to work for such a supportive boss. You also feel great sympathy for his personal problems over the last few months. In your position as accountant for the regional office, you are only too aware of the drop in new policy sales and the impact this will have on the manager's bonus. While you are working late at year-end, Mike stops by your office.
Mike asks you to change the manner in which you have accounted for a new property insurance policy for a large local business. A substantial check for the premium came in the mail on December 31, the last day of the reporting year. The premium covers a period beginning on January 5. You deposited the check and correctly debited Cas and credited an unearned revenue account. Mike says, "Hey, we have the money this year, so why not count the revenue this year? I never did understand why you accountants are so picky about these things anyway, I'd like you to change the way you have recorded the transaction. I want you to credit a revenue account. And anyway, I've done favors for you in the past, and I am asking for such a small think in return." With that, he leaves for the day.
1. How should you handle this situation?
2. What are the ethical implications of Mike's request?
3. Who are the parties who would be helped or harmed if you complied with the request?
4. If you fail to comply with his request, how will you explain your position to him in the morning?
|
Prepare the journal entry for payment of the cash dividends
: Cash Dividends Sanders Corporation has the following shares outstanding: 7,000 shares of $50 par value, six percent preferred stock and 45,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. Prepare the journal ent..
|
|
Differences of subjective and objective forecasting
: A description of a procedure to evaluate the effectiveness of a particular method's output/predictions. A description of the similarities and differences of subjective and objective forecasting.
|
|
Denote the corresponding marginal cdf''s
: Assume, in addition, that X and Y are identically distributed, i.e., have the same pdf. Based on the result of (a) calculate the probability P(X>Y ).
|
|
Prepare report on operational similarity between facilities
: Prepare a report for the board that details operational similarities and differences between the two facilities. This should include, at a minimum, the Policies.
|
|
What are the ethical implications
: Mike Lynch is the manager of an upstate New York regional office for an insurance company. As the regional manager, his compensation package comprises a base salary, commissions, and a bonus when the region sells new policies in excess of its quota. ..
|
|
Hiring entrepreneurial-minded employees
: Why would companies benefit from hiring entrepreneurial-minded employees? Explain an example of a company that embraces the entrepreneurial culture.
|
|
Legal requirements for student nurses
: You are to consider the legal requirements for student nurses & midwives, registered nurses & midwives and the implications for the health facility and/or education provider if required in each of the cases.
|
|
Explain and discuss product quality control for each firm
: Explain and discuss the international arena for purchasing for each firm. Explain and discuss how the following meansures function for each firm: inventory control, scheduling, demand systems, and inventory.
|
|
Complete an outlier payment calculation
: The Safe-Cross® guidewire is present on the following claim. Complete an outlier payment calculation to determine whether this claim would qualify for a high cost outlier payment. If the claim qualifies for outlier payment, calculate the total rei..
|