ACCT 101 Week 4 Discussion | Canvas University
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- 24 Jun 2021
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ACCT 101 Week 4 Discussion | Canvas University
Module 4 Discussion - Grant Film Productions
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Grant Film Productions wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50.
Business has been good but not great. Expansion costs have brought the current ratio down to 1.40 on December 15. Rita Grant, owner of the business, is considering what might happen if she reports a current ratio of 1.40 to the bank. One course of action for Grant is to record in December $10,000 of revenue that the business will earn in January of next year. The contract for this job has been signed.
Requirements
- Journalize the revenue transaction, and indicate how recording this revenue in December would affect the current ratio.
- Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation, and give the reasons underlying your conclusion.
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Criteria |
Full Points |
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Initial post made by 11:59pm on Thursday |
2 |
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Answers to discussion questions are complete, demonstrate careful reading and reflection on the material, and demonstrate understanding of concepts |
4 |
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At least one, insightful comments to classmates initial posts by 11:59pm on Sunday |
2 |
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Correct grammar and spelling |
2 |
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