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

  Accounting research methodology

Please explain to me the accounting research methodologies of deductive, inductive and pragmatic research methods. Give me some examples to reinforce these methods.

  Taxes and shares

Longhorn Company reports current E&P of $100,000 in 20X3 and accumulated E&P at the beginning of the year of negative $200,000. Longhorn distributed $300,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in L..

  Importance of food cost labor and sales

Describe the importance of food cost, labor and sales in a food and beverage operation. Support your description with concepts addressed in the materials provided in this course.

  New corporation tax advantages

On creating a new 100 percent-owned corporation, Ben was advised by his tax consultant to treat 50 percent of the total amount that was invested as a loan and 50 percent as a purchase of corporate stock.

  Annual percentage rates-annual percentage yields

A bank quotes certificate of deposit (CD) yields both as annual percentage rates (APR) without compounding and as annual percentage yields (APY) that include the effects of monthly compounding.

  Finding components of mixed overhead costs

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility.

  Determining accounting systems

What is XBRL? How will it effect financial reporting? Please Explain. What are the main types of accounting software used in a restaurant setting or organization? What are the benefits and limitations of this software? Please Explain.

  Market values and book values

Building an Income Statement, During the year, the Senbet Discount Tire Company had gross sales of $1.06 million. The firm's cost of goods sold and selling expenses were $525,000 and $215,000, respectively. Senbet alo had note payable of $800,000...

  Determine tax consequences to virginia

Virginia, who was experiencing financial difficulties, was able to adjust her debts as follows. Determine the tax consequences to Virginia.

  What should marc say to kelly

In this way we could combine the recording and posting process into one step and save ourselves a lot of time. What do you think?

  Regression analysis

Blacken Company manufactures motorcycles. The company's management accountant wans to calculate the fixed and variable costs associated with utility cost incurred by the factory. Data for the past five months were collected.

  Materials cost accounting-malbim company

The Malbim Company uses a process costing system and adds materials at the beginning. July 1st has 400 units in the beginning inventory (100% materials). The units in beginning inventory (July 1) are only 75% complete on conversion costs-Calculate..

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