Accounting homework help. INTERMIDIATE ACCOINTING CLASS
Part l:
Each question 2-3 paragraph (350 words)
- Although the reporting of cash is relatively straightforward, a number of issues merit special attention. Fully describe these issues.
- Name 5 non-trade receivables.
- Companies use one of two types of systems for maintaining accurate inventory records for these costs. Fully describe these systems.
- Fully describe two methods used in accounting for uncollectible accounts.
- Fully describe two types of problems companies may encounter with Special Sales Agreements.
- Companies generally account for the acquisition of inventory on a cost basis. Fully describe the two cost methods.
- Fully describe the four Cost Flow assumptions.
8. Fully describe the major advantages and disadvantages of LIFO.
Part II: Essay:
You are the assistant controller in charge of general ledger accounts at Riverdale Bottling Company. Your company has a large loan from an insurance company. The loan agreement requires that the company’s cash balance be maintained at $200,000 or more, as reported monthly.
At June 30 the cash balance is $80,000, which you report to Gina Schmitt, the financial vice president. Gina excitedly instructs you to keep the cash book open for one additional day for purposes of the June 30 report to the insurance company.
Gina says “If we don’t get that cash balance over $200,000, we’ll default on our loan agreement. They could close us down, put us all out of our jobs! Gina continues, “I talked to Onoto Distributers (one of Riverdale’s largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we’ll be in the clear. It’s in the mail!
- Who will suffer negative effects if you do not comply with Gina Schmitt’s instructions? Who will suffer if you do comply?
- What are the ethical considerations in this case?
- What alternatives do you have?
