Review the following scenario: Scenario: Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter's wedding, Symington took inventory that cost $10,000. He recorded the transactions as follows: Debit Credit Cost of Goods Sold $10,000 Inventory $10,000 Respond to the following questions and, if appropriate, include personal experience as part of your answers. How do you feel Symington should have recorded these transactions? Why? What are the ethical implications of Symington's actions?
- Review the following scenario:
Scenario: Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split
profits and losses equally, and each takes an annual drawing of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter's wedding, Symington took inventory that cost $10,000. He recorded the transactions as follows:Debit Credit Cost of Goods Sold $10,000 Inventory $10,000 - Respond to the following questions and, if appropriate, include personal experience as part of your answers.
- How do you feel Symington should have recorded these transactions? Why?
- What are the ethical implications of Symington's actions?
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He is the accountant for the business, so should I include that in my explanation? That particularly violates the standards with General Accounting Principles(GAAP) and it could violate Tax codes.
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