Why might be these journal entries considered fraudulent or suspicious? Explain the reasons for each quarter in detail. FIRST|QUARTEREntrydebitcreditPlant, Property, Equipment97,639Sales-Dining(97,639)SECOND QUARTEREntrydebitcreditInventory143,941Sales-Dining(143,941)THIRD QUARTEREntrydebitcreditPlant, Property, Equipment121,043Account Payable(121,043)FOURTH QUARTEREntrydebitcreditPlant, Property, Equipment130,111SG&A(130,111)

First Quarter PROPERTY PLANT AND EQUIPMENT (PPE ACCOUNT HAS BEEN DEBITED WITH A COST OF 97,639 &…

Answered: Why might be these journal entries…

Business

Accounting

Why might be these journal entries considered fraudulent or suspicious? Explain the reasons for each quarter in detail.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Why might be these journal entries considered fraudulent or suspicious? Explain the reasons for each quarter in detail.

FIRST|QUARTER
Entry
debit
credit
Plant, Property, Equipment
97,639
Sales-Dining
(97,639)
SECOND QUARTER
Entry
debit
credit
Inventory
143,941
Sales-Dining
(143,941)
THIRD QUARTER
Entry
debit
credit
Plant, Property, Equipment
121,043
Account Payable
(121,043)
FOURTH QUARTER
Entry
debit
credit
Plant, Property, Equipment
130,111
SG&A
(130,111)

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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