John Mason is the owner and president of Digital Imagery and More Ltd., a company in the multimedia industry. The revenue of the business is about $ 20 million a year. In the past few years, John has spent the following: Swimming pool built at his home: $40 000 Renovations to his cottage: $7500 • Landscaping around his home: $4000 Although each of these expenditures was of a personal nature, Mason requested that invoices for the charges be sent to his company, Digital Imagery and More Ltd. All of the expenditures were recorded in the books of the company in various expense accounts. a. As his accountant, what will you advise John to do? In your answer, be sure to include accounting principles and CPA Code of Conduct reference.

John Mason is the owner and president of Digital Imagery and More Ltd., a company in the multimedia industry. The revenue of the business is about $ 20 million a year. In the past few years, John has spent the following: Swimming pool built at his home: $40 000 Renovations to his cottage: $7500 • Landscaping around his home: $4000 Although each of these expenditures was of a personal nature, Mason requested that invoices for the charges be sent to his company, Digital Imagery and More Ltd. All of the expenditures were recorded in the books of the company in various expense accounts. a. As his accountant, what will you advise John to do? In your answer, be sure to include accounting principles and CPA Code of Conduct reference.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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