Explanation No. In order to reduce the larger personal loan burden to a single individual Mr. P has deliberately reported the personal loan of $56,000 as accounts receivable account. But by reporting the personal loan as normal accounts receivable does not exactly reflect the financial position of the company. As the company is reporting the non current asset as a current asset, this may le...

Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th

26th Edition

ISBN: 9781337498159

Author: Carl Warren, Jim Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Question

Chapter 4, Problem 4.1CP

To determine

Ethical Case:

In this case, Person M has deliberately reported a personal loan of $56,000 to the accounts receivable account in the balance sheet. This loan was borrowed by Person T who is the president of the company.

To Discuss: Whether it is acceptable for Mr. P to report the July 31, 2016 balance sheet.

Expert Solution & Answer

Chapter 4 Solutions

Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th

Ch. 4 - Why do some accountants prepare an end-of-period...Ch. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQ Ch. 4 - Prob. 4DQ Ch. 4 - Why are closing entries required at the end of an...Ch. 4 - What is the difference between adjusting entries...Ch. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQ Ch. 4 - What is the natural business year?Ch. 4 - Prob. 10DQ

Ch. 4 - Prob. 4.1APE Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of owner's equity Marcie Davies owns and...Ch. 4 - Statement of owners equity Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Prob. 4.3BPE Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Prob. 4.6APE Ch. 4 - Prob. 4.6BPE Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Prob. 4.2EX Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Prob. 4.6EX Ch. 4 - Prob. 4.7EX Ch. 4 - Statement of owner's equity Apex Systems Co....Ch. 4 - Statement of owners equity; net loss Selected...Ch. 4 - Prob. 4.10EX Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Optimum Weight Loss Co. offers...Ch. 4 - Prob. 4.13EX Ch. 4 - Prob. 4.14EX Ch. 4 - Closing entries Prior to its closing, Income...Ch. 4 - Closing entries with net income After all revenue...Ch. 4 - Closing entries with net loss Mira Services Co....Ch. 4 - Prob. 4.18EX Ch. 4 - Prob. 4.19EX Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Prob. 4.21EX Ch. 4 - Prob. 4.22EX Ch. 4 - Completing an end-of-period spreadsheet List (a)...Ch. 4 - Prob. 4.24EX Ch. 4 - Prob. 4.25EX Ch. 4 - Appendix Completing an end-of-period spreadsheet...Ch. 4 - Appendix Adjustment data on an end-of-period...Ch. 4 - Appendix Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.1APR Ch. 4 - Financial statements and closing entries Finders...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Prob. 4.1CP Ch. 4 - Financial statements The following is an excerpt...Ch. 4 - Financial statements Assume that you recently...

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