I need some help answering these two accounting ethics case problems. Please answer each question with one solid paragraph. Ethics Case 13-16 Outdoors R USLO13-1Outdoors R Us owns several membership-based campground resorts throughout the Southwest. The company sells campground sites tonew members, usually during a get-acquainted visit and tour. The campgrounds offer a wider array of on-site facilities than most. Newmembers sign a multiyear contract, pay a down payment, and make monthly installment payments. Because no credit check is made andmany memberships originate on a spur-of-the-moment basis, cancellations are not uncommon.Business has been brisk during its first three years of operations, and since going public in 2012. the market value of its stock has tripled.The first sign of trouble came in 2024 when new sales dipped sharply.One afternoon, two weeks before the end of the fiscal year, Diane Rice, CEO, and Gene Sun, controller, were having an active discussionin Sun's office.Sun:Rice:I've thought more about our discussion yesterday. Maybe something can be done about profits.I hope so. Our bonuses and stock value are riding on this period's performance.Sun:We've been recording deferred revenues when new members sign up. Rather than recording liabilities at the time membershipsare sold, I think we can justify reporting sales revenue for all memberships sold.Rice:What will be the effect on profits?Sun: I haven't run the numbers yet, but let's just say very favorable.Required:1. Why do you think liabilities had been recorded previously?2. Is the proposal ethical?3. Who would be affected if the proposal is implemented?Ethics Case 18-8 The Swiss label maker; value of shares issued for equipment LO18-4Bricker Graphics is a privately held company specializing in package labels. Representatives of the firm have just returned fromSwitzerland, where a Swiss firm is manufacturing a custom-made high speed, color labeling machine. Confidence is high that the newmachine will help rescue Bricker from sharply declining profitability. Bricker's chief operating officer, Don Benson, has been under firenot reaching the company's performance goals of achieving a rate of return on assets of at least 12%.The afternoon of his return from Switzerland, Benson called Susan Sharp into his office. Susan is Bricker's Controller.PageBenson: I wish you had been able to go. We have some accounting issues to consider.Sharp: I wish I'd been there. too. I understand the food was marvelous. What are the accounting issues?Benson: They discussed accepting our notes at the going rate for a face amount of $12.5 million. We also discussed financing withstock.Sharp: I thought we agreed; debt is the way to go for us now.Benson:Yes, but I've been thinking. We can issue shares for a total of $10 million. The labeler is custom made and doesn't have aquoted selling price, but the domestic labelers we considered went for around $10 million. It sure would help our rate ofreturn if we keep the asset base as low as possible.Required:1. How will Benson's plan affect the return measure? What accounting issue is involved?2. Is the proposal ethical?3. Who would be affected if the proposal is implemented?

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Answered: I need some help answering these two…

I need some help answering these two accounting ethics case problems. Please answer each question with one solid paragraph.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 40P

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MASTERY PROBLEMBarry Bird opened the Barry Bird Basketball Camp for children ages 10through 18. Campers typically register for one week in June or July,arriving on Sunday and returning home the following Saturday. Collegeplayers serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration feeincludes a room, meals at a nearby restaurant, and basketballinstruction. In the off-season, the facilities are used for weekend retreatsand coaching clinics. Bird developed the following chart of accounts forhis service business: The following transactions took place during the month of June:June 1 Bird invested cash in the business, $10,000.1 Purchased basketballs and other athletic equipment, $3,000. 2 Paid Hite Advertising for flyers that had been mailed to prospectivecampers, $5,000.2 Collected registration fees, $15,000.2 Rogers Construction completed work on a new basketball court thatcost $12,000. Arrangements were made to…
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