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In February 2014, Paula Klink invested an additional $10,000 in Midtown Company. Midtowns accountant, Jon Shin, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Why or why not?

Chapter 1, Questions #18
In February 2014, Paula Klink invested an additional $10,000 in Midtown Company. Midtown’s accountant, Jon Shin, recorded this receipt as an increase in cash and revenues. Is this treatment appropriate? Why or why not?

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No, this treatment is not proper. While the transaction does involve …View the full answer

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Related Book For answer-question
Financial and managerial accounting

Financial and managerial accounting

1st edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

ISBN: 978-1118016114

Answers for Questions in Chapter 1

Brief Exercises:
Continuing cookie chronicle:
DO IT! Review:
Exercises:
FINANCIAL REPORTING AND ANALYSIS:
IFRS Exercises:
Problem Set A:
Problem Set B:
Questions:

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