Bob Bookkeeper is an employee of Drenched Raincoat Company (DRC). Bob has authority to sign checks...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bob Bookkeeper is an employee of Drenched Raincoat Company (DRC). Bob has authority to sign checks and indorse checkson behalf of DRC. Bob needs to pay Acme Button Company $1000. Bob writes a check to "cash" and signs it but accidentally writes out "One Hundred Dollars" in words even though he puts the proper number "1000" on the check. Before delivering the check, bob finds out that Acme breached the contract so he decides he will not pay them and puts a the check is stolen by Theron Thief (and Bob was not negligent) who gives it to his landlord, Larry Landlord, who Theron already owes $1000. Larry has no idea of the theft or any claims on the check. Larry then gives the check to Gary Graduate, his nephew, as a graduation gift. When the check bounces, Gary makes a claim against DRC for $1000. DRC responds that Gary cannot collect on the check since it was stolen and Acme breached the contract for a. top payment on the check. However, which the payment was made. Can Gary collect on the check. Why or why not? If so, how much can he collect? b. Bob is angry at DRC since his annual bonus was too small. Bob decides to get even by creating an employee, Steven Even. Bob writes a check to Steven, signs it and them Bob indorses it with Steven's name. he deposits it an account he has opened in Steven Even's name and the check clears. DRC finds out and wants to hold the bank liable for paying the check when there was a forged indorsement. Must the bank pay DRC back, why or why not? Bob Bookkeeper is an employee of Drenched Raincoat Company (DRC). Bob has authority to sign checks and indorse checkson behalf of DRC. Bob needs to pay Acme Button Company $1000. Bob writes a check to "cash" and signs it but accidentally writes out "One Hundred Dollars" in words even though he puts the proper number "1000" on the check. Before delivering the check, bob finds out that Acme breached the contract so he decides he will not pay them and puts a the check is stolen by Theron Thief (and Bob was not negligent) who gives it to his landlord, Larry Landlord, who Theron already owes $1000. Larry has no idea of the theft or any claims on the check. Larry then gives the check to Gary Graduate, his nephew, as a graduation gift. When the check bounces, Gary makes a claim against DRC for $1000. DRC responds that Gary cannot collect on the check since it was stolen and Acme breached the contract for a. top payment on the check. However, which the payment was made. Can Gary collect on the check. Why or why not? If so, how much can he collect? b. Bob is angry at DRC since his annual bonus was too small. Bob decides to get even by creating an employee, Steven Even. Bob writes a check to Steven, signs it and them Bob indorses it with Steven's name. he deposits it an account he has opened in Steven Even's name and the check clears. DRC finds out and wants to hold the bank liable for paying the check when there was a forged indorsement. Must the bank pay DRC back, why or why not?
Expert Answer:
Answer rating: 100% (QA)
1a A check is a negotiable instrument which means that it can be transferred by mere delivery or by ... View the full answer
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
Posted Date:
Students also viewed these accounting questions
-
In 2015, Maggy (34 years old) is an employee of YBU Corp. YBU provides a 401(k) plan for all its employees. According to the terms of the plan, YBU contributes 50 cents for every dollar the employee...
-
In 2020, Maggy (34 years old) is an employee of YBU Corp. YBU provides a 401(k) plan for all its employees. According to the terms of the plan, YBU contributes 50 cents for every dollar the employee...
-
Horace is an employee of Ace Electric Company. Ace provides all employees with group term life insurance equal to twice their annual salary. How much gross income does Horace have under each of the...
-
An investment was made for $35,000 and and income of $3,000. The ending value of the investment was $34,000. The percentage return on the investment is closest to: 5.7%, 8.6%, 11.8%
-
Construct frequency distributions and histograms for the numerical data in the Excel file Cell Phone Survey. Also, compute the relative frequencies and cumulative relative frequencies.
-
Twitter rsums are a new twist on job hunting. While most job seekers struggle to contain their credentials on one page, others are tweeting their credentials in 140 characters or fewer! Here is an...
-
The following transactions occurred during the month for Mona Wade, CPA, PC: a. Wade opened an accounting firm by investing \($16,500\) cash and office furniture valued at \($5,300\). The business...
-
How does the expense warranty approach differ from the sales warranty approach?
-
What is an incident in which a famous person wore or used a product (not as part of a paid endorsement or ad) and it caused a buying frenzy. Explain how the manufacturer or service provider reacted
-
1. Discuss the main issues faced by Yalla Momos. 2. Evaluate the current financial performance of Yalla Momos and compare his performance to the industry ratios. 3. Elaborate on the relevant factors...
-
Maximum Public Limited is a public company listed on the Caribbean Stock Exchange. The issued share capital was 10 million for ordinary shares and 12 million preference shares both with share prices...
-
Many American and European businesspeople argue that the keiretsu system in Japan acts as a barrier to foreign companies entering the Japanese market. Why do you think they believe this?
-
Discuss Asia as a major marketplace and business center in the world economy.
-
How did import substitution policies affect the economies of Brazil and Argentina?
-
Discuss the role of natural resources and agriculture in Africas economy.
-
Describe Western Europe as a major marketplace and business center in the world economy.
-
3. **Unicycle acceleration. Including terms that Taylor neglects, the equation of mo- tion in a noninertial frame is mr = F m(- dV dt + V) m r 2m 2m m ( r). (6) A unicycle travels with constant speed...
-
The landing gear of an aircraft with: mass of 2000 kg the spring-mass-damper system Consider that the runway surface is y(t) = 0.2 cos 157.08t stiffness of the spring is 5 x 105 N/m. What is the...
-
Assume the same facts as in problem 25, except that Lanny sells the land to the partnership for $60,000. He held the land for investment. Chasteen is a real estate company. How would your answers to...
-
What is the maximum amount that can be contributed to a defined contribution pension plan?
-
What is the standard deduction amount for a dependent? Under what conditions can a dependent claim the same standard deduction as a single individual who is not a dependent?
-
The spectral density of a random signal is given by \[S(f)= \begin{cases}0.0001 \mathrm{~m}^{2} / \text { cycle } / \mathrm{s}, & 10 \mathrm{~Hz} \leq f \leq 1000 \mathrm{~Hz} \\ 0, & \text {...
-
The marginal density function of \(x\) can be determined form the bivariate density function \(p(x, y)\) as a. \(p(x)=\int_{-\infty}^{\infty} p(x, y) d y\) b. \(p(x)=\int_{-\infty}^{\infty} p(x, y) d...
-
Fill in the Blank. Univariate distributions describe the probability distributions of __________ random variables.
Study smarter with the SolutionInn App