Question;The Adjusting Process;From Chapter 3, Ethical Issue 3-1.Complete all parts of the case and respond to;at least two of your classmates? postings.;Ethical;Issue 3-1;The net income of Steinbach;Sons, a department store, decreased sharply during 2014. Mort Steinbach;manager of the store, anticipates the need for a bank loan in 2015. Late in;2014, Steinbach instructs the store's accountant to record a $2,000 sale of;furniture to the Steinbach family, even though the goods will not be shipped;from the manufacturer until January 2015. Steinbach also tells the accountantnot;to make the following December 31, 2014, adjusting entries;Salaries owed to employees $900;Prepaid insurance that has;expired 400;Requirements;Compute the overall effects of these;transactions on the store's reported income for 2014. Why is Steinbach taking this action?;Is his action ethical? Give your reason, identifying the parties helped and the;parties harmed by Steinbach's action. (Challenge)As a personal friend, what advice;would you give the accountant? (Challenge);Completing the Accounting Cycle;Explain the purpose of adjusting;entries.;How is net income affected if;adjusting entries are not made?;Describe the four closing;entries and explain their purpose.
Paper#41898 | Written in 18-Jul-2015Price : $19