Hubert Gundan is the senior accountant for Funtime amusement park company. The companyy sales are $30 million, and the company plans to open more amusement parks in the united states. Funtime board of directors has scheduled a meeting with bankers to discuss financing the expansion. The compan current financial statements will be an important part of the discussions. Hubert has a deadline to prepare the statements which must be met without fail.
Hubert Gundan is the senior accountant for Funtime amusement park company. The companyy sales are $30 million, and the company plans to open more amusement parks in the united states.
Funtime board of directors has scheduled a meeting with bankers to discuss financing the expansion. The compan current financial statements will be an important part of the discussions. Hubert has a deadline to prepare the statements which must be met without fail. The courier will pick up the financial statements and deliver them to the board chairperson at 8am on the day of the meeting.
The day before the deadline, Hubert discovers that the trail balance does not balance. The credot exceeds the debt by $1202.16. Hubert realizes that even if there is no error, he and his staff will be working until at midnight to prepare the financial statements and supporting schedules. Hubert is forced to make a decision. BEcause the discrepancy is small, he decides to enter the $1202.16 as a debt to the repair expense account. He supports the decision with the following reasons:
-The repair expense account is very active and significant. Entering the small amount of $1202.16 will not affect anyone's decision making.
-No one can accuse the company of tryying to inflate its profits because the difference can be charged to an expense account
-High level executives are waiting for the financial informalion. It would be embarrassing for the company to cancel the meeting.
1) who are the stake holders in the case?
2) What are the ethical issues involved?
3) What Alternative course of action if any are available to Hubert?
Please help me answer all 3 questions
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