ASSIGNMENT:

Raffie’s Kids, a nonprofit organization that provides aid to victims of domestic violence, low-income families, and special-needs children, has a 30-year, 5% mortgage on the existing building. The mortgage requires monthly payments of $3,000. Raffie’s bookkeeper is preparing financial statements for the board and, in doing so, lists the mortgage balance of $287,000 under current liabilities because the board hopes to be able to pay the mortgage off in full next year. Of the mortgage principal, $20,000 will be paid next year if Raffie’s pays according to the mortgage agreement. The board members call you, their trusted CPA, to advise the on how Raffie’s Kids should report the mortgage on its balance sheet. What is the ethical issue? Provide your recommendation and discuss the reason for your recommendation.

student 1 (Richard):

Raffie’s Kids balance sheet is a snapshot of the organizations financial position as it is at the specified time and is usually at the end of a trading period. As a Non-Profit Organization, Raffie’s Kids have to be aware of all the financial reporting requirements. Sponsors, individual donors, state, foundations provide financial and other resources to Non-profit organizations and at the same time they expect fulfillment of public goals by the activities of non-profit organization. Raffie’s Kids just like other Non-profit organization cannot function without the this type of management(Hajduova,& Husakova, 2014).Therefore, Raffie’s Kids is obligated to maintain a balance sheet that outlays true and fair position of its financial position.

Raffie’s Kids should treat and report its current mortgage balance amount of $287,000 as its principle mortgage. The mortgage is planned to be cleared within a year, therefore it should be reported as a current asset. In addition, Raffie’s Kids should report all the interest that it has accrued since the last payment as interest payable under current liabilities. The organization pays an installment of $3000 from which an interest payable of 5% is charged ($3000 x 5%) per month which is equal $150. The annual interest payable for the organization is approximately ($150 x 12) or $1800. However, the General Accepted Accounting Standards does not require non-profitable organizations to report future anticipated interest, as a result the $20,000 mortgage principle should not be reported on the balance sheet.

The ethical issue of reporting this mortgage on the balance sheet consists of pressure from the management requiring the accountant to ensure the report is positive to the investors. I would recommend the organization to do away with mortgage as a source of financing and rather opt for donations and simple loans. This is because despite a mortgage charging low interest in the short run, it’s the most expensive source of fund with borrower paying a total cash almost double the initial value of the principle.

Reference:

Hajduova, Z., & Husakova, N. (2014). Financial management of non-profit organization providing specific services. Applied Mechanics and Materials, 708, 210-215. doi:10.4028/www.scientific.net/AMM.708.210.

student 2(Ashley):

Mortgages payable are long-term debts that are backed with security interest in a specific property. Like long-term notes payable, the mortgage payable has a specific amount due in each year, which is determined by an Amortization Schedule. (Nobles, Mattison, & Matsumura, 2014). On the balance sheet, the mortgage payable for the current year (in the amount of $20,000 according to the mortgage agreement) should be recorded as a current liability, because current liabilities would only cover the amount of the mortgage due within that current year. This amount would be detailed in the amortization schedule. The remaining balance of the principle amount, $267,000, should be recorded as a long-term liability because it is not due within that current year.

The purpose of a balance sheet is to “report on assets, liabilities, and owner’s equity of the business as of a specific date” (Nobles, Mattison, & Matsumura, 2014). If the Raffie’s Kids organization were to record the entire principle amount of the mortgage as a current liability, then current liabilities would be overstated, while long-term liabilities would be understated, resulting in the misrepresentation of the nonprofit’s current financial situation. Sponsors and other donors often depend on a company’s truthful financial representation when making decisions about donations, and Raffie’s Kids owe it to them to be honest on all financial statements.

If Raffie’s Kids wishes to pay off the total principle amount of the mortgage, it should adjust the amortization schedule to reflect that desire. In changing the schedule to reflect that the entire principle will be paid in the current year, then Raffie’s could truthful list the mortgage payable as a current liability with no ethical issues to trip over.

Source:

Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren’s Accounting, 10th Edition. Pearson Education, Inc.

Purpose of Assignment

The legal form an entity or individual takes is a decision that must
be considered from a risk and liability perspective, not simply one of
ease of formation or cost. Form can impact the entities ability to grow
and, in some circumstances, its ability to survive. As you consider this
reality and approach this assignment, consider not only the form the
business takes but also the way it will be governed. Remember the law
requires business leaders conduct their business ethically and within
the boundaries of the law.

Assignment Steps

Resources: Legal Environment of Business: Online Commerce, Business Ethics, and Global Issues: Ch. 14, 15, 16 and 17; Week 2 Electronic Reserve Readings; Legal Source database located in the Week 2 Electronic Reserve Readings

Scenario: You are sole
proprietor presenting to a group of investors where you are seeking 20
million dollars to raise capital for your manufacturing company.

Prepare a 10- to 15-slide Microsoft^® PowerPoint^® presentation for your potential investors including both parts:

Part I:

Choose the one form of organization best suited for your manufacturing company and explain why:

• Partnership
• Limited Liability Partnership
• Limited Liability Company (including single member LLC)
• S Corporation
• Franchise
• Corporation

Outline for the investors which form of organization (from the list of six under the first bullet) would be the least suited and why?

Part II:

Address the following for
the investors regarding the corporate form of organization only (from
the list of six under the first bullet):

• Summarize for investors what legal liabilities could arise for the Director or officer of that board?
• Explain how you could minimize those liabilities for the Director or officer of that board?

Cite a minimum of three scholarly references. One scholarly reference must be from the University Library.

Format your presentation consistent with APA Guidelines.

brainstorm concepts you need to discuss under the identified key point, and review the feedback received by your instructor for the Week Three key points.

1)What are strategies that might be used to bring about change in the organization?

To successfully bring about change it is vital to examine and diagnose where the resistance is. Identify who might resists and why (Kotter & Schlesinger, 2018). Sometimes even if the changes are rational and make sense to everyone

people still feel a loss and uncertainty (Kotter & Schlesinger, 2018). Before making plans to makes changes, there are assessments that must be used to ensure that the change it successful.

The four reasons people resist change:

1)”They desire not to lose something of value to them”(Kotter & Schlesinger, 2018,para. 9).

2)”A misunderstanding of the change and it’s implications”(Kotter & Schlesinger, 2018, para.9).

3)”A belief that the change does not make sense for the organization”(Kotter & Schlesinger, 2018, para.9).

4)”A low tolerance for change”(Kotter & Schlesinger, 2018, para. 9).

2)How might the identified strategies be used to prevent or to minimize conflict?

The strategies of assessment of individuals and groups both prevents and minimizes conflict. When people’s emotions and reactions to change are taken into account, the organization is better prepared to handle any resistance or reluctance to adopt the new changes.

References

Kotter, J.P., & Schlesinger, L.A. (2008, July-August). Choosing strategies for change. Havard Business Review, (), . Retrieved from https://hbr.org/2008/07/choosing-strategies-for-ch…

3)What strategies might be applied if conflict does arise?

If conflict does arise, it must be dealt with immediately and effectively. The first step is to prepare for a resolution. Many times the first signs of conflict can be ignored and left to fester. It is important that everyone agrees that there is an issue (Mindtools, 2018). Discuss the impact this conflict is having in the workplace and agree to be cooperative working towards a resolution (Mindtools, 2018). Communication is extremely important is helping to resolve conflict. Everyone must in agreement to communicate. The step is to clarify each person’s positions and the belief system underlying those positions (Mindtools, 2018). Branch off into smaller groups to thoroughly analyze each position and generate possible solutions (Mindtolls, 2018). The final step is to get all of the smaller groups back together and share and agree on a solution (Mindtools, 2018).

References

Mindtools. (2018). Resolving team conflict . Retrieved from https://www.mindtools.com/pages/article/newTMM_79….

FeedBack:

. I do still see evidence of lack of citing issues especially when you refer to direct quotes, and hence it may be better for the team to avoid use of direct quotes until “in text citations are correctly formatted” (Romano, 2018, para. 1). You have integrated my feedback well into the summary, however I do not see evidence of your brainstorming relevant to your findings on the outline. When you develop these summaries, integrate my feedback as well as what you have brainstormed, i.e. what is in the outline so that you fully synthesize it. I really enjoyed reading the outline and moving forward include a paragraph on what you covered in the summary statement.

Write a 150- to 350-word summary based on your brainstorm for this week and on the feedback given for the previous week. What tasks does your team need to complete to properly support the subjects in the Week Five Organizational Structure Presentation assignment.

Q1 –

What types of resources would you use in helping a child or adolescent deal with the questions and the pain associated with the loss of a loved one? Research and post a minimum of three websites or other resources that might be beneficial in helping a child or adolescent deal with death, dying, loss, and/or questions regarding immortality. Include an annotation as to what the resource contains and why you think it might be helpful.

Q2 –

Describe Stroebe’s Dual Process Model of Coping with loss. Why do you think this “balance” is important in helping one recover from grief?

Read the following: http://www.factcheck.org/2016/11/how-to-spot-fake-news/ and Watch the following: https://www.youtube.com/watch?v=UYc-hd1QSwA

Take this quiz: https://www.washingtonpost.com/graphics/2017/politics/cognitive-biases/?tid=sm_tw&utm_term=.9b2747fd076b ( right click and choose “open link on incognito window”)

• If you had to help someone spot “fake news,” what would you tell them? Choose a news article from a reputable media outlet and compare it to an online story that you know is fake.
• Using the checklist provided on the fact check web site, compare the two. Although fake news is not new, it seems harder to distinguish and more accepted now. Why? How will this acceptance of fake news impact our democracy?
• How has the idea of “fake news” impacted our ability to be really informed on the important topics of the day? What steps can we take to become informed with legitimate information?
• Is “fake news” really all that recent, or do we hear more about it as a result of the recent election cycle and events that have followed?
• What are your thoughts on the quiz you took?

This assignment must follow MLA guidelines, be typed in Times New Roman, 12 pt. font, and be a minimum of 1000 words with a works cited page. The works cited are not included in the minimum word count. Any articles/links/videos given in the assignment prompt MUST be cited in your paper and works cited. You may also use other sources, but these are the minimum required. Without all of them, your paper is a 0.