Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition to its normal business activities, the company has excess warehouse space that it rents out to local businesses. Because the typical renter is a small business, CV Industries requires renters to make lease payments for the entire rental period on the day the lease is signed. As a result, CV Industries typically reports a large unearned rent balance on its balance sheet.
After making adjusting entries for the current year, Chris prepares the adjusted trial balance and notices that the company's earnings will decline significantly. He presents the adjusted trial balance to the company's CFO, Antonio Beldin, who is concerned about the earnings decline. Mr. Beldin notices the large unearned rent balance and proposes making an additional end-of-period adjusting entry to recognize the entire unearned rent balance as revenue in the current period. Chris protests, reminding Mr. Beldin that the adjusting entry for unearned rent has already been made. Mr. Beldin assures Chris that his proposal is acceptable, reminding Chris that "because we have already received the cash, we have the right to recognize the revenue in the current period." He instructs Chris to make the additional adjusting journal entry. Chris is hesitant to follow these instructions, but he is sensitive to the company's emphasis on earnings growth and makes the adjusting entry as instructed.
1. Is Chris behaving ethically? Why?
2. Who is affected by Chris's decision?
Increasing the debt ratio significantly overnight may reduce a firm's cost of capital but it does change the characteristics of the firm. Managers who are accustomed to operating in the relatively low-stress environment of a pr..
What does the distance between the SM Land the expected return of an investment indicate?
norman co borrowed 15000 from the local bank in april 1 2012 when the company was started. the note has an 8 percent
What are the responsibilities of the auditors and how do they fulfill their responsibilities? Which audit firm performs the audit of the company
Ending inventory of finished goods for each month is budgeted to be 30% of the next month's budgeted sales in units. Calculate the budgeted unit sales for September.
For the year ended May 31, 2015, NIKE, Inc. financial statements included the following data: Use this data to calculate the profit margin ratio
Merchandise is sold on account to a customer for $12,500, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $400. Determine the following:
Identify the sponsoring organization of the FASB and the process by which the FASB arrives at a decision and issues an accounting standard.
Prepare any disclosures and journal entries required by the airline in preparation of the December 31, 2014, financial statements.
Adjusting entries affect at least one balance sheet account and at least one income statement account. For the following entries, identify the account.
What are the possible consequences to the accountant for not presenting accurate budget figures
Based on these financial data and your knowledge and assumptions about the nature of the businesses that the companies operate, determine which data relate to which companies.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd