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bulgar [2K]
3 years ago
8

You have recently been hired as the assistant controller for Stanton Industries. Your immediate superior is the controller who,

in turn, reports to the vice president of finance. The controller has assigned you the task of preparing the year-end adjustments. For receivables, you have prepared an aging of accounts receivable and have applied historical percentages to the balances of each of the age categories. The analysis indicates that an appropriate balance for Allowance for Uncollectible Accounts is $180,000. The existing balance in the allowance account prior to any adjustment is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new aging category. This will change the required allowance for uncollectible accounts from $180,000 to $135,000. Tactfully, you ask the controller for an explanation for the change and he tells you, "We need the extra income; the bottom line is too low."
Required:
1. What is the effect on income before taxes of the change requested by the controller?
2. Discuss the ethical dilemma you face. Consider your options and responsibilities along with the possible consequences of any action you might take.
Business
1 answer:
Nata [24]3 years ago
5 0

Answer:

Answer is given below.

Explanation:

it is absolutely exploitative to adjust the maturing of the records receivable with no legitimate explanation so as to diminish the remittance made so as to expand the benefit and show an off base monetary record figures to the partners. The controller can't subjectively choose to change the records receivable to cut down the noncollectable records as at some point or another a similar will be found during review and a similar will be hailed off as a fake. The long haul results you would confront incorporate landing terminated from the position, having your authorized dropped in the event that you are CPA and may likewise confront lawful prosecutions. You should disclose to the controller that so as to simply introduce a decent benefit for the present year it can place into the danger for the future and put their vocation in question. Additionally, a similar won't be valued by the investors and the organization may go on free its altruism.

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Brrunno [24]

Answer:

True

Explanation:

The statement is true; companies usually attain extra financing either by debt or equity (Preferred stock or common stock). Organisations for the most part have a decision with respect to whether to look for Preferred stock, common stock or Debt financing. The decision frequently relies on which source of financing is most effectively available for the organisation. Firms and organisation use that extra funds from stock to invest in new ventures and to buy new machinery, which increases the overall assets of the company.

6 0
3 years ago
On January 1, 2021, Splash City issues $460,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and
Effectus [21]

Answer:

The journal entry is shown below:

Explanation:

Journal Entry.

Jan.1  Cash A/c Dr    $460,000

           To Bonds payable A/c    $460,000

(Bond issue is being recorded)  

Jun.30  Interest Expense A/c Dr    $18,400

           To Cash A/c    $18,400  ($460,000×4% = $18,400)

(Interest is being recorded)

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           To Cash A/c    $18,400  ($460,000×4% = $18,400)

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3 0
3 years ago
During September, the capital expenditure budget indicates a $280,000 purchase ofequipment. The ending September cash balance fr
Mariulka [41]

Answer:

$260000

Explanation:

$280k  purchase equiment >> Outflow of cash

$40,000>> Operative Cash >> Inflow Cash

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$20000 >> Cash balance

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Clint Hill, CEO of Oregano Systems, a software engineering company, holds internal contests on the company intranet to get his e
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In this case Hill, organizes an internal contest in order to get new business ideas.

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bulgar [2K]

As Lynn is working on writing the text that will be incorporated into a new magazine ad for her company’s line of handbags, she is engaging in the encoding stage of the communication process.

<h3><u>What is encoding?</u></h3>
  • Humans primarily communicate through encoding and decoding messages. The individual who creates and transmits the message is known as the encoder.
  • The encoder must ascertain how the audience will interpret the message and make necessary changes to ensure that the audience interprets the message as intended.
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Different signals require different levels of conscious thought when they are encoded. The encoder should also care for any "noise"—such as other messages, distractions, or influences—that could obstruct their message.

Know more about encoding with the help of the given link:

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