1. Compute the overall effect of these transactions on the store's reported income for 20X5. 2. Why did Cruz take this action? Is this action ethical? Give your reason, identifying the parties helped and the parties harmed by Cruz' action. 3. As a personal friend, what advice would you give the accountant?
1. Compute the overall effect of these transactions on the store's reported income for 20X5. 2. Why did Cruz take this action? Is this action ethical? Give your reason, identifying the parties helped and the parties harmed by Cruz' action. 3. As a personal friend, what advice would you give the accountant?
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphics To Economics
Problem 2SQP
Related questions
Question
please answer this asap, thanks!
answer must be in detail. provide with clear explanations per number as well as solving.
Transcribed Image Text:The net income of Cruz', a department store, decreased sharply during 20X5.
Mark Cruz, owner of the store anticipates the need for a bank loan in 20X6.
Late in 20X5 he instructed the accountant to record a P26,000 of furniture to
the Cruz family, even though the goods will not be shipped from the
manufacturer until January 20X6. Cruz also told the accountant not to make
the following December 31, 20X5, adjusting entries:
Salaries owed to employees
Prepaid insurance that has expired
P18,000
5,300
Required:
1. Compute the overall effect of these transactions on the store's reported
income for 20X5.
2.
Why did Cruz take this action? Is this action ethical? Give your reason,
identifying the parties helped and the parties harmed by Cruz' action.
As a personal friend, what advice would you give the accountant?
3.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning