Collectability of outstanding loan

Assignment Help Accounting Basics
Reference no: EM1373642

"Fred Oatly is the loan officer of National Bank of Dallas. National has a loan of $260,000 outstanding to Regional Delivery Service, a company specializing in delivering products of all kinds on behalf of smaller companies. National's collateral on the loan consists of 35 small delivery trucks with an average original cost of $17,000.

Oatly is concerned about the collectability of outstanding loan and whether the trucks still exist. He thus engages Susan Virms, CPA, to count the trucks, using registration information held by Oatly. She was engaged because she spends most of her time auditing used automobile and truck dealerships and has extensive specialized knowledge about used trucks.

Reference no: EM1373642

Questions Cloud

Determine accounting and opportunity costs : A potential entrepreneur is trying to make a decision whether to open a new spa. She presently makes $35,000 per year as an aerobics instructor
Review the financial statements : Review SEC 10-K report, the financial statements, and the notes to the financial statements. Search for "effective tax rate". Believe the topics of deferred tax reporting (assets and liabilities).
Determine the specific accounting principles : Explain the areas in which the Adelphia communications engaged in fraudulent financial reporting and the circumstances that led to this
Concept of the economic value added : California Electric has a cost of equity capital of 16%. The company has consistently been authorized a return on equity capital below this expenses.
Collectability of outstanding loan : Oatly is concerned about the collectability of outstanding loan and whether the trucks still exist. He thus engages Susan Virms, CPA, to count the trucks, using registration information held by Oatly.
Report based on intensive investigation of sales department : Management has decided to get a detailed report based on an intensive investigation of the financial position of the sales department, production department and development and research department.
Determine the tax consequences to virginia : Virginia, who was experiencing financial difficulties, was capable to adjust her debts as follows. Determine the tax consequences to Virginia.
Global capital investment : Major multinational companies such as Acme attempt to track the relative movements and magnitudes of global capital investment.
When this transaction galaxy debit : An appraisal shows that the land's value is $400,000 and the building's value is $500,000. When recording this transaction Galaxy

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Percentage of sales and percentage of receivables

What is the difference between using the percentage of sales and percentage of receivables method for calculating doubtful accounts? Is it appropriate to use a hybrid of the percentage of sales and the percentage of receivables methods of calculat..

  Information about risk aversion

Risk aversion implies which some securities will go unpurchased in market even if a large risk premium is paid to investors.

  Question on foreign currency

What are the two techniques used to convert trial balances from foreign currencies in U.S. dollars? Explain the situations when you would employ each metod.

  Determine cost to record the new asset from exchange

Chi Corporation trades an asset with a book value of $20,000 for another asset with a fair market value of $15,000. Find out Chi s cost to record the new asset from the exchange.

  Finding the debt equivalent of operating lease

American leases various types of equipment and property, primarily aircraft and airport facilities. The future minimum lease payments required under capital leases

  Accounting information system replacement

Analyze the need for changing to a new system and the potential benefits and risks associated with this change. Identify three (3) advantages and three (3) disadvantages for each of the following choices:

  Analyze the tax implications

Analyze the tax implications of capital gains and/or losses based on the following case study. Apply the IRS codes to calculate adjusted gross income for individuals. Support your conclusions with reference to specific IRS codes and regulations.

  Buffet requirement to be capital efficient

The best investor of all time, Warren Buffet, talks about investing in "capital efficient" businesses. Coca Cola falls into this category since it generates great sums of cash with minimal investment in capital.

  Payroll entries-oates company

Oates Company's payroll for the week ending January 15 amounted to $50,000 for Office Salaries and $100,000 for Store Wages. None of the employees has reached the earnings limits specified for federal or state employer payroll taxes. The following..

  Letter of intent for red cross

Please help me research The American Red Cross Organization and determine a need based on an existing program or even develop a new program that would be beneficial to the organization and the community that it serves.

  Fasb codification research system

What is the specific citation that provides guidance for determining whether an arrangement involving the sale of inventory is in substance a financing arrangement?

  Year end accounts receivable

An auditor noted that client sales increased 10 percent for the year. At the same time, Cost of Goods Sold as a percentage of sales had decreased from 45 percent to 40 percent and year-end accounts receivable.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd