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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1. Stampede Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0% 45% 45% 10% Maintenance 55% 0% 30% 15% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 138,000 Maintenance 60,000 Fabrication 114,000 Assembly 90,000 The total cost accumulated in the fabrication department using the direct method is: The answer is not 194100 2. Bifurcator Company produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were…

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Due Jan 26 11:59pm Module 2 Discussion Provide and discuss an example of a situation where a company would use a job cost sheet. As part of your analysis, be sure to explain the nature and importance of a job cost sheet. or Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss. 21 Replies, 18

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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