Ethical Issue Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed. To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

Question

I want to correct answer general accounting question

Answer 1

Question

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

I want to correct answer general accounting question

Hello teacher please help me with accounting questions

Do fast answer of this accounting questions

Answer 2

Question

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 5

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Answer 6

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

Answer 7

Chapter 4, Problem 4.1EI

1.

To determine

Ethical Issue

Case Summary: Company G has borrowed $100,000 from a bank for expansion. The bank has put a condition that Company G should maintain a current ratio of 1.50. Business is not great for Company G, and as a result of the expansion the current ratio is down to 1.40. To save the situation, R the owner is contemplating to record revenue of $10,000 in December, even though it would be earned in next January, as the contract for the job is signed.

To Journalize: The revenue transaction, and indicate how this will affect the current ratio.

Answer 8

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Answer 9

2.

To determine

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 13

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 14

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 15

Trending nowThis is a popular solution!

Answer 16

Trending nowThis is a popular solution!

Answer 17

Trending nowThis is a popular solution!

Answer 18

Trending now

Answer 19

This is a popular solution!

Answer 20

See solution

Check out sample textbook solution

Answer 21

Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...

Concept explainers

To Discuss: If it is ethical to record the revenue transaction in December, and identify the accounting principle being violated by this.

Chapter 4 Solutions