Cashaun Wo xCCUbrightspace.wiltech.edu/d2l/le/7659/discussions/topics/2429/ViewSubscribeNew Wave Images is a graphics design firm that prepares its financial statements using a calendar year.Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheetas of December 31. In January, this balance sheet will be submitted along with an application for a loanfrom First Peoples Community Bank. An excerpt from the balance sheet follows:Cash$ 25,000Accounts Receivable85,000Total Assets$ 250,000The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tomborrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom hasorally assured Manny that he will pay off the loan within the next year. Because Tom is the companypresident, Manny treats the amount due as a trade account receivable. In addition, Manny knows that thebank will consider a large balance in trade accounts receivable more favorably than a large personal loan toa single individual. Manny reported the $56,000 in the same manner on the preceding year's balance sheet.Questions to answer:1. Is Manny behaving ethically by reporting the loan to Tom as a trade account receivable? Why?2. Who will be affected by Manny's decision?

The ethic in business is a very important concept which must be followed by each and every…

Answered: Questions to answer: 1. Is Manny…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

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Review the following transactions and prepare any necessary journal entries for Woodworking Magazine. Woodworking Magazine provides one issue per month to subscribers for a service fee of $240 per year. Assume January 1 is the first day of operations for this company, and no new customers join during the year. A. On January 1, Woodworking Magazine receives advance cash payment from forty customers for magazine subscription services. Handyman had yet to provide subscription services as of January 1. B. On April 30, Woodworking recognizes subscription revenues earned. C. On October 31, Woodworking recognizes subscription revenues earned. D. On December 31, Woodworking recognizes subscription revenues earned.
New Wave Images is a graphics design firm that prepares its financial statements using acalendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows: Cash $ 25,000Accounts receivable 85,000......Total assets $250,000 The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has orally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amount due as a trade account receivable. In addition, Manny knows that the bank will consider a large balance in trade accounts receivable more favorably than a large personal loan to a single individual. Manny reported…
New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows: Cash Accounts receivable ...... Total assets $ 25,000 85,000 $250,000 The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company presi- dent. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has orally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amount due as a trade account receiv- able. In addition, Manny knows that the bank will consider a large balance in trade accounts receivable more favorably than a large personal loan to a single individual. Manny…
Ethics in ActionNew Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows: Cash $25,000 Accounts receivable 85,000 ........ Total Assets $250,000 The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has o rally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amountdue as part of its normal accounts receivable. In addition, Manny knows that the bank will consider a large balance in accounts receivable more favorably than a large personal loan…
New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows:Cash $ 25,000 Accounts receivable 85,000 …… Total assets $250,000The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has orally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amount due as part of its normal accounts receivable. In addition, Manny knows that the bank will consider a large balance in accounts receivable more favorably than a large personal loan to a single individual. Manny…
New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows: Cash:$25,000 Accounts receivable: $85,000 Total Assets: $250,000 The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has orally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amount due as a trade account receivable. In addition, Manny knows that the bank will consider a large balance in trade accounts receivable more favorably than a large personal loan to a single individual. Manny reported…
Please provide a 2-paragraph response by the end of Thursday. You must provide your initial posting before you can see other member's comments. Before the following Monday, provide at least one follow-up posting to your classmates. All postings should be substantive and thought-provoking, adding new and unique content to the discussion. New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows:Cash ............ $25,000 Accounts receivable.....$85,000 Total assets............$250,000 The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new…
Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice president of finance, has prepared a classified balance sheet as of July 31, 2016, the end of its fiscal year. This balance sheet will be submitted with Picasso Graphics' loan application to Paris Trust & Savings Bank. In the Current Assets section of the balance sheet, Pablo reported a $56,000 receivable from Becky Holt, the president of Picasso Graphics, as a trade account receivable. Becky borrowed the money from Picasso Graphics in January 2014 for a down payment on a new home. She has orally assured Pablo that she will pay off the account receivable within the next year. Pablo reported the $56,000 in the same manner on the preceding year's balance sheet. Evaluate whether it is acceptable for Pablo to prepare the July 31, 2016, balance sheet in this manner. Must be 150+ words, good grammar and source a similar real life experience or similar concepts discussed in financial…
Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice president of finance, has prepared a classified balance sheet as of July 31, 2016, the end of its fiscal year. This balance sheet will be submitted with Picasso Graphics’ loan application to Paris Trust & Savings Bank.In the Current Assets section of the balance sheet, Pablo reported a $56,000 receivable from Becky Holt, the president of Picasso Graphics, as a trade account receivable. Becky borrowed the money from Picasso Graphics in January 2014 for a down payment on a new home. She has orally assured Pablo that she will pay off the account receivable within the next year. Pablo reported the $56,000 in the same manner on the preceding year’s balance sheet.Evaluate whether it is acceptable for Pablo to prepare the July 31, 2016, balance sheet in this manner.
Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice president of finance, has prepared a classified balance sheet as of July 31, 2016, the end of its fiscal year. This balance sheet will be submitted with Picasso Graphics' loan application to Paris Trust & Savings Bank. In the Current Assets section of the balance sheet, Pablo reported a $56,000 receivable from Becky Holt, the president of Picasso Graphics, as a trade account receivable. Becky borrowed the money from Picasso Graphics in January 2014 for a down payment on a new home. She has orally assured Pablo that she will pay off the account receivable within the next year. Pablo reported the $56,000 in the same manner on the preceding year's balance sheet. Evaluate and share on thoughts on whether it is acceptable for Pablo to prepare the July 31, 2016, balance sheet in this manner
Your activity: Posting to the ledgerThe following journal entries were found in the books of Lagumang Pagsusulit Photocopying Services in the month of January 2019: January 20191 Cash on Hand Php 30,000.00Machines 450,000.00Building 500,000.00Granfon, Capital Php 980,000.00 3 Permits and Licenses 7,500.00Cash on Hand 7,500.00 4 Cash on hand 5,500.00Service Revenue 5,500.005 Cash on Hand 4,650.00Accounts Receivable 2,300.00Service Revenue 6,950.00 6 Prepaid Insurance 12,000.00Cash on hand 12,000.009 Supplies 10,000.00Accounts Payable 10,000.00 13 Cash on Hand 15,500.00Service Revenue 15,500.0015 Accounts Receivable 8,000.00Service Revenue 8,000.0016 Salaries Expense 3,000.00Cash on Hand 3,000.00 19 Repairs and Maintenance 1,000.00Cash on Hand 1,000.0022 Cash on Hand 7,000.00Service Revenue 7,000.0024 Supplies Expense 3,000.00Supplies 3,000.00 27 Cash on Hand 6,500.00Service Revenue 6,500.0030 Granfon, Drawing 5,000.00Cash on Hand 5,000.00
Accounting The following information for ABCs Projects is available: MARCH APRIL MAY JUNE JULY AUGUS T Cash revenue 180 000 200 000 250 000 290 000 320 000 350 000 Credit revenue 380 000 410 000 500 000 560 000 560 000 600 000 Total purchases 320 000 340 000 385 000 432 000 445 000 460 000 Salaries and wages 63 000 63 000 63 000 63 000 63 000 63 000 Other expenses 12 000 12 500 12 500 14 500 54 800 59 000 Additional information: Credit revenues are collected as follows: 50% within 30 days (the next month) 25% within 60 days 15% within 30 days 10% uncollectible (bad debt) The following discount is given on revenues: 10% on all cash revenue 5% on credit revenue paid within 30 days Salaries, wages and other expenses are paid in cash. Other expenses include depreciation of $4 000 per month. 55% of all purchases are on credit and are paid for in the following month. The rest…

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Questions to answer: 1. Is Manny behaving ethically by reporting the loan to Tom as a trade account receivable? Why? 2. Who will be affected by Manny's decision?