Read the scenario and answer the question. The net income of Cruz', a department store, decreased sharply during 20x5. Mark Cruz, owner of the store anticipates the need for a bank loan in 20X6. Late in 20X5 he instructed the accountant to record a P26,000 of furniture to the Cruz family, even though the goods will not be shipped from the manufacturer until January 20X6. Cruz also told the accountant not to make the following December 31, 20X5, adjusting entries: Salaries owed to employees P18,000 Prepaid insurance that has expired 5,300 QUESTION: Based on case 1, as a personal friend, what advice would you give the accountant?
Read the scenario and answer the question. The net income of Cruz', a department store, decreased sharply during 20x5. Mark Cruz, owner of the store anticipates the need for a bank loan in 20X6. Late in 20X5 he instructed the accountant to record a P26,000 of furniture to the Cruz family, even though the goods will not be shipped from the manufacturer until January 20X6. Cruz also told the accountant not to make the following December 31, 20X5, adjusting entries: Salaries owed to employees P18,000 Prepaid insurance that has expired 5,300 QUESTION: Based on case 1, as a personal friend, what advice would you give the accountant?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Read the scenario and answer the question.
The net income of Cruz', a department store, decreased sharply during 20x5. Mark Cruz, owner of the store anticipates the need for a bank loan in 20X6. Late in 20X5 he instructed the accountant to record a P26,000 of furniture to the Cruz family, even though the goods will not be shipped from the manufacturer until January 20X6. Cruz also told the accountant not to make the following December 31, 20X5,
Salaries owed to employees P18,000
Prepaid insurance that has expired 5,300
QUESTION:
Based on case 1, as a personal friend, what advice would you give the accountant?
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