AC 113 UNIT 9 DISCUSSION Unit 9: Unit 9: Liabilities and Stockholders’ Equity – Discussion Unit 9 Discussion: Accounting for debt is important in businesses. Understanding the accounting for current and long term liabilities is important in understanding the solvency of a business. In this Discussion, you will look at how businesses finance operations through debt. This weekâ€™s Discussion focuses on Activity 8-1 located on pages 316â€“317 of the textbook, which reads as follows: Jas Carillo was discussing summer employment with Maria Perez, President of Valparaiso Construction Service. Maria: Iâ€™m glad that youâ€™re thinking about joining us for the summer. We could certainly use the help. Jas: Sounds good. I enjoy outdoor work, and I could use the money to help with next yearâ€™s school expenses. Maria: Iâ€™ve got a plan that can help you out on that. As you know, Iâ€™ll pay you $4 per hour; but in addition, Iâ€™d like to pay you with cash. Since youâ€™re only working for the summer, it really doesnâ€™t make sense for me to go to the trouble of formally putting you on our payroll system. In fact, I do some jobs for my clients on a strictly cash basis, so it would be easy to just pay you that way. Jas: Well, thatâ€™s a bit unusual, but I guess money is money. Maria: Yeah, not only that, itâ€™s tax free! Jas: What do you mean? Maria: Didnâ€™t you know? Any money that you receive in cash is not reported to the IRS on a W-2 form, therefore, the IRS doesnâ€™t know about the income â€“ hence, itâ€™s the same as tax-free earnings. Why does Maria Perez want to conduct business transactions using cash (not check or credit card)? How should Jas respond to Mariaâ€™s suggestion?
AcademicPaperExperts.com is a platform where students from all over the globe can get assignment assistance. It is our endeavor to provide customized assignments which are authentic for students in the United States, United Kingdom, New Zealand, Australia and other countries around the globe. Our team undergoes thorough training to handle all the inquiries in a professional manner. We do not set the bar in custom essay writing, we are the bar. All the custom papers and essays you order are written by our writers in tandem with your requirements.