Question: Can wages payable be deferred to make the financial statements look better? It is early December and you have just been hired as an accountant

Can wages payable be deferred to make the look better?
It is early December and you have just been hired as an accountant for a local computer hardware store. Business is expanding due to the increased number of sales reps your boss just hired. Your boss is excited about expanding the business into other nearby communities, but will need a loan from the bank to do so. He has hired you to clean up the books and get the company's financial information ready so he can present it to the bank's loan officer after the first of the year. On December 30, your boss asks you not to record the sales force's wages for the month of December because he won't be able to pay them until mid- January. He wants the to be in good shape when he visits the loan officer. What should you do?

Step by Step Solution

★★★★★

3.40 Rating (178 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The force wages if not paid at the year end ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

980-B-A-G-F-A (10038).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The following financial statements are available for Sherwood Real Estate Company: Sherwood Company is using these financial statements to entice investors to buy stock in the company. However, a...

The following is a partial trial balance for Pluto, a public company, for the year ended December 31, 2017. Each item has its normal debit or credit balance, but the total does not equal to zero as...

On January 20, 2011, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date...

Final Backgrounder Saskatchewan 831 489.6 420.2 14.2% Alberta 1,569 2,214.4 1,791.5 19.1% British Columbia 3,277 2,591.1 2,215.0 14.5% Yukon 167 73.1 66.3 9.3% Northwest Territories 99 53.4 44.9...

Hi! I have completed the exam, but am looking for someone to provide the answer key! Name: PENN ID: _________________________ ACCOUNTING 101 - 620, EXAM #1 Spring Semester, 2010 Instructions: 1. 2....

please help complete number one and show why its fraud in bulletin points and calculations in excel sheet please. ISSUES IN ACCOUNTING EDUCATION Vol. 19, No. 4 November 2004 pp. 505-527 Interstate...

6. Prepare, using good form, an income statement, a statement of stockholders equity, and a classified balance sheet. 7. Prepare closing journal entries. 8. Post the closing entries to the general...

Please help me to answer the question: why is IFRS an appropriate direction for accounting practice to ensure consistency and comparability of accounting practice across the world? Use the attach...

Good Morning Everyone, I need some assistance with these two problem. I must calculate the Debt to Equity for Tesla Inc. using their financial statements ( also attached). AND I must calculate the...

Twin Pines Internet Caf (TPIC) was established and incorporated on January 1, 2020, by Marie Mundle and has just completed its third year of operations with a year-end of December 31 . Marie was born...

Suppose a library is considering the purchase of a new information system that will give users access to a number of on-line databases for 5 years. Benefits are estimated to be $100,000 per year...

Use the data in Problem and Case 2.12. In problem Required: (a) Prepare a calculation to prove the net loss on the sale of the truck. (b) Prepare the cash flow from investing activities section of...

1. Determine if the following scenarios are describing saving or investment. If they describe investment, which type of investment? Explain. a. Amazon purchases $100 million worth of products from a...

19. What is meant by responsible financial reporting?

Analyzing the Impact of Errors This spreadsheet assignment is a continuation of the spreadsheet assignment given in Chapter 2. If you completed that spreadsheet, you have a head start on this one. 1....

External Auditors Visit or call a local CPA firm (or the local office of a multi-office CPA firm). Ask about career opportunities, the size of the firms staff, who some of its major clients are, and...

Blowing the Whistle on Former Partners On St. Patricks Day in 1992, Chambers Development Company, one of the largest landfill and waste management firms in the United States, announced that it had...

How many different possible tests can be made from a test bank of 20 questions if the test consists of 5 questions? (Ignore the order of questions.)

Question 2 (13 marks) Manchester College (MC) is a private university located in Winnipeg, Manitoba. MC offers programs toward a bachelors degree in science. Revenues consist of tuition fees,...

6. Suppose you are evaluating two mutually exclusive projects, Thing 1 and Thing 2 , with the following cash flows: (a) If the cost of capital on both projects is 5%, which project, if any, would you...