Discuss the ethical and professional conduct of Daryl Kirby in applying for the loan from Free Spirit Bank.
Q: Susan Huang began the practice of law October 1, 2020, with an initial investment of $10,500 in…
A: Financial Statements are prepared by the organization for reporting purposes. These are the…
Q: Asuncion Alcala, to be able to guide the accountancy students in their pursuits for.CPA glory,…
A: Accounting equation of the business says that total assets will be always equal to total liabilities…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: 1. No, Colleen Fernandez is not acting in a professional manner. Omitting the financial statements…
Q: Daryl Kirby opened Squid Realty Co. on January 1, 2018. At the end of the first year, the business…
A: Introduction:
Q: Kathy Wintz formed a lawn service business as a summer job. To start the corporation on May 1, 2018,…
A: Requirement 1:
Q: Tom loves cooking and after attending culinary school, he decided to start his own eatery in…
A: Income statement: It is also known as profit and loss statement which shows the revenues, expenses,…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: Accounting equation: The accounting equation refers to total assets equals total liabilities and…
Q: Jon Yanta, owner of Yanta’s Yard Care, is disappointed that his business incurred a net loss for…
A: Net Income:-It is income obtained by subtracting expenses from Revenue during the period. This…
Q: On March 1, 2014, David Richardson started a painting business near a historical housing district.…
A: Accounting equation- It is an equation which state all the assets and liabilities items separately…
Q: Mr. Kamau started his business on 1 January 2016 with £35,000 in a bank account. Unfortunately he…
A: A profit and loss statement summarizes the sales, expenses, profits, and losses of a corporation.…
Q: The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business…
A: The question is based on the concept of Financial Accounting.
Q: classified balance sheet as of July 31, 2016, the end of its fiscal year. This balance sheet will be…
A: In the given scenario Pablo reported a $56,000 receivable from Becky Holt, the president of Picasso…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: Accounting Equation:Accounting equation refers total assets equal to total liabilities and total…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: Accounting equation: The accounting equation refers to total assets equals total liabilities and…
Q: Jared Jones has started a screen printing business. Because he is a private company he has chosen…
A: Financial Statement:- These are statements prepared at the end of the financial year to know the…
Q: Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice…
A: Ethics are a set of moral principles they affect how people in a society make decisions and how…
Q: Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh…
A: First of all, we need to understand that the procudure followed by Roy and Hugh to change the…
Q: Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh…
A: As per rules, expenses that are already paid and not yet incurred are the prepaid expenses that are…
Q: Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh…
A:
Q: ared Jones has started a screen printing business. Because he is a private company he has chosen not…
A: Cash basis of accounting:In this type of accounting only the transaction involving actual cash…
Q: The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business…
A: All amounts are in dollar ($).
Q: Carlos Young started an engineering firm called Young Engineering. He began operations in March 2020…
A: The trial balance included both types of accounts i.e temporary accounts and permanent accounts. All…
Q: Lucy Sdn Bhd. is a food production company which began operations on January 1, 2021. At the…
A: Accounting Equation- The relationship between assets, liabilities, and stockholder equity is…
Q: Jim Sandrolini is an accountant for a local manufacturing company. Jim's good friend, Dan…
A: Accounting: Business ethics are business policies and practices which are made to conduct a business…
Q: Evaluate and share on thoughts on whether it is acceptable for Pablo to prepare the July 31, 2016,…
A: Ethical Case: In this case, Person M has deliberately reported a personal loan of $56,000 to the…
Q: The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business…
A:
Q: Flo Choi owns a small business and manages its accounting. Her company just finished a year in which…
A:
Q: cenario: For the past several years, Angela Smith operated a part-time consulting business from her…
A: What is meant by Adjusting Entries? Adjustment in accounts means to change. Therefore, Adjusting…
Q: Picasso Graphics is a graphics arts design consulting firm. Pablo Taylor, its treasurer and vice…
A: Accounts Receivables are the amounts due from the customers on account of credit sales made.
Q: Several years ago, your brother opened Magna Appliance Repairs. He made a small initial investment…
A: The financial statements of a company include the statement of balance sheet and income statement of…
Q: Kathy Wintz formed a lawn service business as a summer job. To start the corporation on May 1, 2018,…
A:
Q: Ron Smith opens an apartment-locator business near a college campus. The com- pany will be named…
A: Accounting equation of Campus…
Q: Exeter is a building contractor on the Gulf Coast. After losing a number of big lawsuits, it was…
A: Requirement 1: This action would overstate net income by $10,000 in the income statement and…
Q: Ikaw passed the very difficult CPA board examination in October and immediately set-up his…
A: Accounting equation refers the double entry system of each transaction and the way the journal entry…
Q: Flo Choi owns a small business and manages its accounting. Her company just finished a year in which…
A: Depreciation is allocation of capital cost incurred on fixed asset over its useful life. It is…
Q: st to be paid using a loan from Bank of Newington is $200k. Question Newington Bank is considering…
A: A loan refers to the sum of money taken by the borrower from an entity or a financial institution at…
Q: a) Prepare the necessary adjusting journal entries on Dec 31, 2020. [Narrations are not required]…
A:
Q: Exeter is a building contractor on the Gulf Coast. After losing a number of big lawsuits, it was…
A: (i) This action would overstate net income by $10,000 in the income statement and understate the…
Q: A few years ago, Sam Gig founded Gig n Spin Consultancy Services. Sam is aware that you and your…
A: Adjusted Trial Balance - Adjusted Trial Balance includes ledgers after providing adjusting entries…
Q: On March 1, 2014, David Richardson started a painting business near a historical housing district.…
A: Basic accounting equation says that at a particular point of time, Assets = Liabilities + Equity
Q: Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to…
A: Cash Flow Statement - Cash Flow Statement is the statement that shows the cash inflow and outflow of…
Q: Melody Lane Music Company was started by John Ross early in 2018. Initial capital was acquired by…
A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…
Q: On June 1 2010 HASF organized a business called friends with a truck for the purpose of operating an…
A: Prepare required journal as follows:
Q: Bob Jacobs wishes to expand his business and has borrowed $100,000. As a condition for making this…
A: Step 1 The current ratio is the ratio which states that whether an entity can able to pay to its…
Q: Juana dela Cruz, to be able to guide the accountancy students in their pursuits for passing the CPA…
A: Transaction: It is an event between a buyer and seller which involves money. It is an exchange of…
Q: You work as an accountant for a small land development company that desperately needs…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On behalf of Squid Realty Co., Daryl applied to Ocean National Bank for a loan of $375,000. Based on Squid Realty Co.'s financial statements, which had been prepared on a cash basis, the Ocean National Bank loan officer rejected the loan as too risky.
After receiving the rejection notice, Daryl instructed his accountant to prepare the financial statements on an accrual basis. These statements included $65,000 in accounts receivable and $25,000 in accounts payable. Daryl then instructed his accountant to record an additional $30,000 of accounts receivable for commissions on property for which a contract had been signed on December 28, 2015. The title to the property is to transfer on January 5, 2016, when an attorney formally records the transfer of the property to the buyer.
Daryl then applied for a $375,000 loan from Free Spirit Bank, using the revised financial statements. On this application, Daryl indicated that he had not previously been rejected for credit.
- Discuss the ethical and professional conduct of Daryl Kirby in applying for the loan from Free Spirit Bank.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking to increase the company's borrowings with the bank from $100,000 to $150,000. Matt has an uneasy feeling as he examines the loan application from Aggressive Corporation, which just completed its first year of operations. The application included the following financial statements. The income statement submitted with the application shows a net income of $30,000 in the first year of operations. Referring to the balance sheet, this net income represents a more-than-acceptable 15% rate of return on assets of $200,000. Matt's concern stems from his recollection that the $100,000 note payable reported on the balance sheet is a three-year loan from his bank, approved earlier this year. He recalls another promising new company that, just recently, defaulted on its loan due to its inability to generate sufficient cash flows to meet its loan obligations. Seeing Matt's hesitation, Larry Bling, the CEO…Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large amount of borrowed funds was invested in a new building addition as well as in equipment and fixture additions. Choi’s banker requires her to submit semiannual financial statements so he can monitor the financial health of her business. He has warned her that if profit margins erode, he might raise the interest rate on the borrowed funds to reflect the increased loan risk from the bank’s point of view. Choi knows profit margin is likely to decline this year. As she prepares year-end adjusting entries, she decides to apply the following depreciation rule: All asset additions are considered to be in use on the first day of the following month. (The previous rule assumed assets are in use on the first day of the month nearest to the purchase date.) Required 1. Identify decisions that managers like Choi must make in applying depreciation methods. 2. Is Choi’s rule an ethical…Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large amount of borrowed funds was invested in a new building addition as well as in equipment and fixture additions. Choi’s banker requires her to submit semiannual financial statements so he can monitor the financial health of her business. He has warned her that if profit margins erode, he might raise the interest rate on the borrowed funds to reflect the increased loan risk from the bank’s point of view. Choi knows profit margin is likely to decline this year. As she prepares year-end adjusting entries, she decides to apply the following depreciation rule: All asset additions are considered to be in use on the first day of the following quarter. (The previous rule assumed assets are in use on the first day of the month nearest to the purchase date.) Discuss the following: Identify decisions that managers like Choi must make in applying depreciation methods. Is Choi’s rule an…
- Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. Given this scenario, share your thoughts on the following questions. Is Colleen behaving in a professional manner by omitting some of the financial statements? Why or Why not What impact could this omission have on the business or the bank, which is loaning the money?Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Coleen has told her accountant to provide the bank with just the balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. The accountant, Jim Long, only sent over the balance sheet to First Federal Bank Did Jim act ethically or unethically? Why?The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business eight years ago. The company is now faced with financial challenges and is therefore in need of financial assistance from Ready Cash a local bank. You and your group members are the accounting associates supporting the credit request to Ready Cash and they are requesting a full set of financial statements to ensure that granting the loan would be financially feasible. Your head of finance has furnished you with the latest trial balance for The Pizza and Coffee Company, along with other information relevant to the year under review and you are tasked to prepare the documents requested by Ready Cash. Below is the trial balance which was extracted from the books of the business on December 31, 2020, the end of the company’s financial year. As a group, you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s…
- The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business eight years ago. The company is now faced with financial challenges and is therefore in need of financial assistance from Ready Cash a local bank. You and your group members are the accounting associates supporting the credit request to Ready Cash and they are requesting a full set of financial statements to ensure that granting the loan would be financially feasible. Your head of finance has furnished you with the latest trial balance for The Pizza and Coffee Company, along with other information relevant to the year under review and you are tasked to prepare the documents requested by Ready Cash. Below is the trial balance which was extracted from the books of the business on December 31, 2020, the end of the company’s financial year. As a group, you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s…The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business eight years ago. The company is now faced with financial challenges and is therefore in need of financial assistance from Ready Cash a local bank. You and your group members are the accounting associates supporting the credit request to Ready Cash and they are requesting a full set of financial statements to ensure that granting the loan would be financially feasible. Your head of finance has furnished you with the latest trial balance for The Pizza and Coffee Company, along with other information relevant to the year under review and you are tasked to prepare the documents requested by Ready Cash. Below is the trial balance which was extracted from the books of the business on December 31, 2020, the end of the company’s financial year. As a group, you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s…Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. In groups of three or four, discuss the following questions:1. Is Colleen behaving in a professional manner by omitting some of the financial statements?2. a. What types of information about their businesses would owners be willing to provide bankers? What types of information would owners not be willing to provide?b. What types of information about a business would bankers want before extending a loan?c. What common interests are shared by bankers and business owners?
- Several years ago, your brother opened Niagara Appliance Repairs. He made a small initial investment and added money from his personal bank account as needed. He withdrew money for living expenses at irregular intervals. As the business grew, he hired an assistant. He is now considering adding more employees, purchasing addi- tional service trucks, and purchasing the building he now rents. To secure funds for the expansion, your brother submitted a loan application to the bank and included the most recent financial statements (shown below) prepared from accounts maintained by a part-time bookkeeper. Indicate the accounts that might need to be adjusted before an accurate set of finan- cial statements can be prepared. c. Why did the loan officer ask your brother whether he used the accrual basis of accounting for revenues and expenses? Why would it have been important to use this method?Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has decided to omit the other financial statements because there was a net loss during the past year. Is Colleen behaving in a professional manner by omitting some of the financial statements? Justify your answer. What types of information about their businesses would owners be willing to provide bankers? What types of information would owners not willing to provide? What types of information about a business would bankers want before extending the loan? What common interests are shared by bankers and business owners?The Pizza and Coffee Company is owned and operated by Patty Patterson who commenced the business eight years ago. The company is now faced with financial challenges and is therefore in need of financial assistance from Ready Cash a local bank. You and your group members are the accounting associates supporting the credit request to Ready Cash and they are requesting a full set of financial statements to ensure that granting the loan would be financially feasible. Yourhead of finance has furnished you with the latest trial balance for The Pizza and Coffee The company, along with other information relevant to the year under review and you are tasked to prepare the documents requested by Ready Cash. Below is the trial balance which was extracted from the books of the business on December 31, 2020, the end of the company’s financial year. you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s financial…