1. Ruth Harbin opened Macaw Real Estate Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On behalf of Macaw Real Estate, Ruth applied to First City Bank for a loan of $120,000. Based on Macaw Real Estate’s financial statements, which had been prepared on a cash basis, the First City Bank loan officer rejected the loan as too risky.
After receiving the rejection notice, Ruth instructed her accountant to prepare the financial statements on an accrual basis. These statements included $41,500 in accounts receivable and $13,200 in accounts payable. Ruth then instructed her accountant to record an additional $12,500 of accounts receivable for commissions on property for which a contract had been signed on December 28, 2015, but which would not be formally “closed” and the title transferred until January 20, 2016.
Ruth then applied for a $120,000 loan from Second National Bank, using the revised financial statements. On this application, Ruth indicated that she had not previously been rejected for credit.
Discuss the ethical and professional conduct of Ruth Harbin in applying for the loan from Second National Bank. Write a summary for about 800 words.
Consider the economies of Sporon and Gribinez, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 3 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2049. Sporon Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2019 6 50 3,000 2049 9 50 3,600 Gribinez Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2019 9 50 4,000 2049 12 50 4,300 Initially, the number of tools per worker was lower in Sporon than in Gribinez. From 2019 to 2049, capital per worker rises by 3 units in each country. The 3-unit change in capital per worker causes productivity in Sporon to rise by an __________ amount than productivity in Gribinez. This illustrates the concept of __________, which makes it __________ for countries with low output to catch up to those with higher output.
Hospitality Management. George Jarvis purchased cedar park on. 1, 2018. It is ammo. 31. George has so accounting Odeon but pay). Ps Mr. Jarvis’s (meted employee who has a background in a.m., you discover the following information
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Cash Receipts
Cash Poorest
Jarvis investment for Mailer park shoes
Phlox 000,300
Land
Php6 MO 000
Building
Office equipment
Mortgage potable
Insurance
Wanes
Maintenance
Office supplies
OEMs
property.
Jarvis salary
Pei. sales revenue
Mortgage iffiest expense
Mortgage Uncial parent Jas & Feh
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The following balance sheet & Income Statement Items, listed in alphabetical order, are available from the records of Star Light Company at December 31, 2019: Complete a Multi-Step Income Statement and Multi-Step Balance Sheet.
In a two- to three-page paper (excluding the title and reference pages), explain the purpose of an income statement and how it reflects the firm’s financial status. Include important points that an analyst would use in assessing the financial condition of the company. Also, analyze Ford Motor Company’s income statement from its 2012 Annual Report (Links to an external site.).
Your paper must be formatted according to APA style as outlined in the Ashford Writing Centre, and it must include citations and references for the text and at least three scholarly sources from the Ashford University Library. Your paper should include an introduction paragraph with a thesis, and a conclusion paragraph that reaffirms your thesis.
Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.
Sahra Ong is the sole proprietor of ‘Vacation’ a beach clothing business. Sahra designs and sews fashionable beachwear that has a high SPF rating. Sahra launched a bespoke beachwear range twelve months ago, and thanks to a cover story of her business published in the inflight magazine of a large airline company, demand for her bespoke beachwear has increased significantly. Sahra is so busy with the growth of the business that she has been unable to attend to the bookkeeping, so she has recently hired Stone & Co Accounting Specialists Pty Ltd to take over the accounting function. You are the graduate accountant working at Stones & Co Accounting Specialists Pty Ltd and are now responsible for preparing the monthly journals for ‘Vacation’. The following is a list of transactions that took place during the month of July 2020 that need to be recorded in the General Journal. July 1 The business purchased a new sewing machine at a cost of $8,500. $2,500 was paid in cash and the remaining amount was paid using a loan from Wi Bank. July 2 The monthly shop & workshop rent of $2,500 was paid. July 5 A new range of SPF fabric was purchased from ‘World Fabrics Ltd’ on credit for $4,000. July 11 Sahra sold on credit 27 long sleeve Rashies for $58 each to ‘The Tornadoes’, a local beach volleyball club. The terms of the sale require full payment is made within 30 days. July 18 Sahra shut the shop at midday for an hour and paid $20 from the business bank account for lunch at ‘Waves’, a local beachside café. July 27 The first payment of $200 was paid off the loan that ‘Vacation’ borrowed from Wi Bank on July 1. July 28 ‘The Tornadoes’ beach volleyball club paid $522 off the amount they owe ‘Vacation’ for the purchase of the Rashies on July 11. Required: Record the General Journal entries in the proforma provided on the following page to record each of the above transactions where required. Remember to format the journals correctly and include a narration (explanation) for each journal entry.
Condensed financial data of Minnie Hooper Company are shown below.
Minnie Hooper Company Comparative Balance Sheets December 31
Assets 2014 2013
Cash $ 93,600 $ 33,400
Accounts receivable 63,200 37,000
Inventory 124,500 102,650
Investments 79,500 107,000
Plant assets 318,000 205,000
Accumulated depreciation (44,000) (40,000)
Total $634,800 $445,050
| Liabilities and Stockholders’ Equity | ||||
| Accounts payable | $ 56,600 | $ 48,280 | ||
| Accrued expenses payable | 15,100 | 18,830 | ||
| Bonds payable | 140,000 | 70,000 | ||
| Common stock | 250,000 | 200,000 | ||
| Retained earnings | 173,100 | 107,940 | ||
| Total | $634,800 | $445,050 |
Minnie Hooper Company Income Statement
For the Year Ended December 31, 2014
| Sales revenue | $297,500 | ||
| Less: | |||
| Cost of goods sold | $99,460 | ||
| Operating expenses, excluding | |||
| depreciation expense | 19,670 | ||
| Depreciation expense | 25,000 | ||
| Loss on disposal of plant assets | 5,000 | ||
| Income taxes | 37,270 | ||
| Interest expense | 2,940 | 189,340 | |
| Net income | $108,160 |
Additional information:
1. New plant assets costing $149,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 were sold for $10,000, resulting in a loss of $5,000.
4. A cash dividend of $43,000 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.
At 30 June 2020, Aqua Ltd recognized a deferred tax asset of $9 000 and a deferred tax liability of $12 000. This has resulted by applying a tax rate of 30%. Because of mounting debt due to extravagant spending, the Australian government has determined to raise more revenue from companies by way of taxation. It announced that it will increase the tax rate as of 1 July 2020 to 34%.
Required
Discuss how the change in tax rate would affect the existing deferred tax balances and the calculation of tax in future years. Include in your answer the adjusting journal entries that would be required, and how the adjustments were calculated.
Discuss what Aqua Ltd would disclose for deferred tax (using the adjusted figures) if they decide to offset their figures.
how are expenses and withdrawals similar, and how are they different sole proprietorships, partnerships and corporations differ legally; how and why does accounting treat them alike
Prepare Micron’s income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2018. Assume an income tax rate of 30%. Ignore EPS disclosures. The preliminary 2018 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2018($ in millions, except earnings per share)Revenues and gains: Net sales $ 425Interest 3Other income 126Total revenues and gains 554Expenses:Cost of goods sold 270Selling and administrative 154Income taxes 52Total expenses 476Net Income $ 78Earnings per share $ 3.90Additional Information:1. Selling and administrative expenses include $26 million in restructuring costs.2. Included in other income is $120 million in income from a discontinued operation. This consists of $90 million in operating income and a $30 million gain on disposal. The remaining $6 million is from the gain on sale of investments.3. Cost of goods sold was increased by $5 million to correct an error in the calculation of 2017’s ending inventory. The amount is material. Required: For each of the three additional facts listed in the additional information, discuss the appropriate presentation of the item described. Do not prepare a revised statement