Ethical Issue Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018. The effect of the transactions on the reported net income of the company for the year 2018.

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Answer 1

Question

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)

Answer 2

Question

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

Answer 6

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

Answer 7

Chapter 3, Problem 3.1EI

1.

To determine

Ethical Issue

Case Summary: The net income of Company S went down sharply in 2018, for which M, the owner seeks bank loan urgently in 2019. To impress the bank, the owner asked the accountant to overstate the net income of 2018 by adopting means like reporting the unearned revenue, and concealing some expenses to be reported in the income statement of 2018.

The effect of the transactions on the reported net income of the company for the year 2018.

Answer 8

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

Answer 9

2.

To determine

To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

Answer 10

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

Answer 11

3.

To determine

To Identify: The advice to be given to the accountant as a personal friend.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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To Identify: The reason for M to adopt this method, if it is ethical, and the parties helped and parties harmed.

To Identify: The advice to be given to the accountant as a personal friend.

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