How to prepare the financial statements


Response to the following problem:

Identify factors in an ethical decision Jennifer Rankine is an accountant for a local manufacturing company. Jennifer's good friend, Mike Bortolotto, has been operating a retail sporting goods store for about a year. The store has been moderately successful, and Mike needs a bank loan to help finance the next stage of his store's growth. He has asked Jennifer to prepare financial statements that the banker will use to help decide whether to grant the loan. Mike has proposed that the fee he will pay for Jennifer's accounting work should be contingent upon his receiving the loan.

Required: What factors should Jennifer consider when making her decision about whether to prepare the financial statements for Mike's store?

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Financial Accounting: How to prepare the financial statements
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