User Account

All Pages

Discuss the reason for your recommendation

Assignment Help Accounting Basics
Reference no: EM131434951

Accounting Discussion

Raffie's Kids, a nonprofit organization that provides aid to victims of domestic violence, low-income families, and special-needs children, has a 30-year, 5% mortgage on the existing building. The mortgage requires monthly payments of $3,000. Raffie's bookkeeper is preparing financial statements for the board and, in doing so, lists the mortgage balance of $287,000 under current liabilities because the board hopes to be able to pay the mortgage off in full next year. Of the mortgage principal, $20,000 will be paid next year if Raffie's pays according to the mortgage agreement. The board members call you, their trusted CPA, to advise the on how Raffie's Kids should report the mortgage on its balance sheet. What is the ethical issue? Provide your recommendation and discuss the reason for your recommendation.

Instructions: Your initial response should be no less than 250 words.

Reference no: EM131434951

Questions Cloud

Compare the differences between the benefits of two function : Compare the similarities between the responsibilities of the external and internal audit functions. Compare the differences between the benefits of the two functions.
Npv-pi and irr calculations : Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,960,000, and the project would generate cash flows of $380,000 per yea..
What is the difference between easement and license : What is the difference between an easement and a license and give specific example. which do you believe affords greater legal protections to the: a)owner and b) licensee.
Falon cost of common equity capital : (Cost of common equity) Falon Corporation is issuing new common stock at a market price of $27.32. Dividends last year were $1.39 and are expected to grow at an annual rate of 8.4 percent forever. What is Falon's cost of common equity capital?
Discuss the reason for your recommendation : The board members call you, their trusted CPA, to advise the on how Raffie's Kids should report the mortgage on its balance sheet. What is the ethical issue? Provide your recommendation and discuss the reason for your recommendation.
Compute the market value of the bonds : Compute the market value of the bonds. How many bonds will the firm have to issue to receive the needed funds? What is the firm's after-tax cost of debt if the firm's tax rate is 34 percent?
Weighted average cost of capital : In the spring of last year, Tempe Steel learned that the firm would need to re-evaluate the company's weighted average cost of capital following a significant issue of debt.
Explain an income transfer program : What is the difference between an income transfer program and a social insurance program
How can opportunity affect the decision making process : How can opportunity affect the decision making process. why do you think scheduling has been the major focus of effort throughout the history of project management rather than performance or budget. Relate and explain Porter's Five Forces Model to Qu..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Expert the swell computer company has developed a new line

expert the swell computer company has developed a new line of desktop computers. it is estimated that the cash returns

  Prepare the journal entries to record this transaction

Assume the same information as BE9-4. On March 4, 2011, Delong Co. receives payment of $5,400 in full from Ristau Inc. Prepare the journal entries to record this transaction.

  For the current year paxman company incurred 150000 in

for the current year paxman company incurred 150000 in actual manufacturing overhead. the manufacturing overhead

  Samantha tax consequences

The mortgage interest is only on her home because the horse farm improvements are not mortgaged. a. What are Samantha's tax consequences if the miniature horse activity is a hobby? b. If it is a business?

  The journal entry to record the receipt of interest

Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually.

  Received payment less the discount

Journalize the following merchandise transactions:

  Ethical behavior of companies regarding financial accounting

Write a 350-word response to the following: Do you think the Sarbanes-Oxley Act has made a difference in the ethical behavior of companies regarding their financial accounting? Why or why not?

  The directors of fruit sales plc produced

The directors of Fruit Sales plc produced the following income statement (profit and loss account) for Year 2 and balance sheet at the end of Year 2.

  Balances of accounts receivable prepaid expenses and

as a preliminary to requesting budget estimates of sales costs and expenses for the fiscal year beginning january 1

  Coleman a married taxpayer is going to establish a

coleman a married taxpayer is going to establish a manufacturing business. he anticipates that the business will be

  Jamie smith negotiated a bank loan for 33000 for 90 days at

jamie smith negotiated a bank loan for 33000 for 90 days at a bank rate of 14. assuming the interest is deducted in

  Allocation of manufacturing overhead

Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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