Question 1
The first case focuses on Madoff Securities and in particular the role that his accountant David Friehling played. Mr. Friehling's firm issued unqualified review opinions going back at least a decade. You are obligatory to research the critical issues surrounding the Madoff debacle, specifically as they relate to Mr. Friehling and his firm. This will involve initial background information on the Madoff issue as a whole as well as information specific to Mr. Friehling
Your paper should address the following-
1. The paper must have a good, solid opening that offers an insight into the topic and the issues that you've researched with respect to this case. For instance the opening can provide general background on Madoff Securities, the Ponzi scheme etc., nonetheless the overall discussion must lead to the issues listed below
2. Describe key issues of the case as they relate to Mr. Friehling's actions, or inactions, in relation to the AICPA's Code of Professional Conduct. Identify as well as describe the issues and provide examples to clarify and amplify your discussion. (that is What rules, if any did he violate?)
3. Deliberate key issues if any with respect to Mr. Friehling and the SEC
4. The paper should contain a clear as well as concise conclusion that summarizes the paper
5. It should likewise contain a brief discussion wherein you opine (express your opinion) in the last paragraph or two on Mr. Friehling's conduct in this matter
Question 2
On January 1, 2013 Madison Products issued $40 million of 6% 10-year adaptable bonds at a net price of $40.8 million. Madison newly issued similar however nonconvertible bonds at 99 (that is 99% of face amount). The bonds pay interest on June 30 as well as December 31. Each $1000 bond is alterable into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method
On June 1, 2015 Madison informed bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2015. By June 30 altogether bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30 Madison paid the semiannual interest as well as issued the requisite number of shares for the bonds being converted
Make the journal entry for the June 30, 2013, interest payment
Make the journal entries for the June 30, 2015 interest payment by Madison as well as the conversion of the bonds (book value method)