Annette Kagel opened Harre Real Estate Co. on January 1, 2007. At the end of the first
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After receiving the rejection notice, Annette instructed her accountant to prepare the financial statements on an accrual basis. These statements included $31,500 in accounts receivable and $10,200 in accounts payable. Annette then instructed her accountant to record an additional $10,000 of accounts receivable for commissions on property for which a contract had been signed on December 28, 2007, but which would not be formally "closed" and the title transferred until January 5, 2008.
Annette then applied for a $200,000 loan from First National Bank, using the revised financial statements. On this application, Annette indicated that she had not previously been rejected for credit.
Discuss the ethical and professional conduct of Annette Kagel in applying for the loan from First National Bank.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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