Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition to its normal business activities, the company has excess warehouse space that it rents out to local businesses. Because the typical renter is a small business, CV Industries requires renters to make lease payments for the entire rental period on the day the lease is signed. As a result, CV Industries typically reports a large unearned rent balance on its balance sheet.   After making adjusting entries for the current year, Chris prepares the adjusted trial balance and notices that the company’s earnings will decline significantly. He presents the adjusted trial balance to the company’s CFO, Antonio Beldin, who is concerned about the earnings decline. Mr. Beldin notices the large unearned rent balance and proposes making an additional end-of-period adjusting entry to recognize the entire unearned rent balance as revenue in the current period. Chris protests, reminding Mr. Beldin that the adjusting entry for unearned rent has already been made. Mr. Beldin assures Chris that his proposal is acceptable, reminding Chris that “because we have already received the cash, we have the right to recognize the revenue in the current period.” He instructs Chris to make the additional adjusting journal entry.   Chris is hesitant to follow these instructions, but he is sensitive to the company’s emphasis on earnings growth and makes the adjusting entry as instructed. 1. Is Chris behaving ethically? Why? 2. Who is affected by Chris’s decision?

Ali Inc. is a manufacturer of custom furniture, which was incorporated on January 3, 2019. The following transactions happened during the year ended December 31, 2019. 1 On January 3rd, the owner invested $750,000 to start the business. On January 3rd, Ali signed a two-year lease contract to rent a building which will be used as the main manufacturing facility. The first and last month rent was paid in advance on Jan 3rd. Monthly rent is $5,000. On March 1, Ali purchased manufacturing equipment at a cost of $200,000. Ali paid $50,000 in cash and the rest will be paid next year. The equipment has a useful life of 8 years and $5,000 residual value. The company uses double declining balance method of depreciation. On April 1, Ali borrowed $350,000 from a bank. The loan is a 4-year with 4% interest rate. The interest is 4 payable on the first day of each month, beginning May 1st. On April 15, Ali purchased inventory of $150,000 from suppliers on account and is charged 13% harmonized sales…

According to your studying of the Conceptual Framework, Discuss the following: 1. Selane Eatery operates a catering service specializing in business luncheons for large companies. Selane requires customers to place their orders 2 weeks in advance of the scheduled events. Selane bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date. Conceptually, when should Selane recognize revenue related to its catering service? 2. Mogilny Company paid $135,000 for a machine. The Accumulated Depreciation account has a balance of $46,500 at the present time. The company could sell the machine today for $150,000. The company president believes that the company has a “right to this gain.” What does the president mean by this statement? Do you agree? 3. Three expense recognition methods (associating cause and effect, systematic and rational allocation, and immediate recognition) were discussed in the chapter…

Lexcon Farm employs one worker. The employee works Monday to Friday and is paid a weekly salary of $560 every Friday. As of July 31, 2018, all of July's weekly salaries have been paid except the amounts for Monday, July 30 and Tuesday, July 31. The last two days of July's salary of paid on Friday, August 3 along with the first three days of August's salary. Lexcon Farm records all adjusting entries on a monthly basis. a) Prepared an adjusting entry on July 31, 2018 to accrue the employee's salary for Monday, July 30 and Tuesday, July 31. b) Record the payment of salary on August 3, 2018. On November 1, 2022, Miller Web Services borrowed $100,000 from Big Bank. The loan plus interest is to be repaid on January 1. 2023. The interest rate on this bank loan is 6%. Prepare all entries associated with the above transaction, assuming Miller prepares monthly adjusting entries and pays the loan plus interest on tha due date

On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foreman’s electrical work does not pass inspection, and Foreman grants the customer an allowance of $600 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. 2. & 3. Record the journal entries for the above information. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.