Question
You are auditing Canyon Outdoors and given the following three transactions, which of them are related party transactions that need to be disclosed in
You are auditing Canyon Outdoors and given the following three transactions, which of them are related party transactions that need to be disclosed in the financial statements? Explain the reason (2 points). 1. Canyon Outdoors's lease (rental) for its main stores is with York Properties, which is a real estate firm owned by Mr. Smedes. Mr. Smedes is a member of Canyon Outdoer's board of directors. 2. Short-term loans are provided to Canyon Outdoors by Cameron Bank. Ms. Suzanne is the loan officer assigned by Cameron Bank to work with Canyon Outdoor. Ms. Suzanne is the wife of the largest investor in Canyon Outdoor. 3. Canyon Outdoors's board of directors consists of several individuals who own stock in the company. At a recent board meeting, the board approved its annual dividend payment to the shareholders effective June 1, 2023
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started