Ethical Case Study Case Summary: The manufacturing company C rented out their excess warehouse space to a local company in lease. The entire lease amount was received on the day, the lease was signed. So the company reports a huge amount of unearned rent in its balance sheet . While preparing the adjusted trial balance at the end of the accounting period, the chief accountant Mr. C noticed a significant decline in the earnings of the company and reported it to the CFO. The CFO instructed him to pass an adjusting entry for unearned rent (as rent revenue), as they have received the full cash, and have the right to recognize the revenue for the company in the current period. With lots of dilemma in his mind finally Mr. C passed the adjusting entry. To explain: If Mr. C is behaving ethically or not?
Ethical Case Study Case Summary: The manufacturing company C rented out their excess warehouse space to a local company in lease. The entire lease amount was received on the day, the lease was signed. So the company reports a huge amount of unearned rent in its balance sheet . While preparing the adjusted trial balance at the end of the accounting period, the chief accountant Mr. C noticed a significant decline in the earnings of the company and reported it to the CFO. The CFO instructed him to pass an adjusting entry for unearned rent (as rent revenue), as they have received the full cash, and have the right to recognize the revenue for the company in the current period. With lots of dilemma in his mind finally Mr. C passed the adjusting entry. To explain: If Mr. C is behaving ethically or not?
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
Chapter 3, Problem 3.1CP
1.
To determine
Ethical Case Study
Case Summary:
The manufacturing company C rented out their excess warehouse space to a local company in lease. The entire lease amount was received on the day, the lease was signed. So the company reports a huge amount of unearned rent in its balance sheet. While preparing the adjusted trial balance at the end of the accounting period, the chief accountant Mr. C noticed a significant decline in the earnings of the company and reported it to the CFO. The CFO instructed him to pass an adjusting entry for unearned rent (as rent revenue), as they have received the full cash, and have the right to recognize the revenue for the company in the current period. With lots of dilemma in his mind finally Mr. C passed the adjusting entry.
To explain: If Mr. C is behaving ethically or not?
Haberdashery Company has a beginning Work-in-Process Inventory of 33,000 units (40% complete). During the period, 119,000 units were started and the ending Work-in-Process Inventory consisted of 27,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing? A) 146,600 B) 155,000 C) 171,000 D) 161,000
Subject: Financial Accounting
A broadcasting company failed to make a year-
end accrual of $350,000 for fines due to a violation
of FCC rules. Its tax rate is 44%. As a result of this error,
net income was:
(a) Unaffected
(b) Overstated by $196,000
(c) Overstated by $120,000
(d) Overstated by $80,000