D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance. Adequate information: On the trial balance the total credits exceeded the total debits by $1,000. EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account. EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision. To determine: The stakeholders in the given case.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

(b)

To determine

The ethical issues in the given case.

(c)

To determine

The alternatives available to EK.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

None

Compute the percentage of total return?

Compute the percentage of total return? General accounting

Answer 2

Question

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

(b)

To determine

The ethical issues in the given case.

(c)

To determine

The alternatives available to EK.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

(b)

To determine

The ethical issues in the given case.

(c)

To determine

The alternatives available to EK.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

(b)

To determine

The ethical issues in the given case.

(c)

To determine

The alternatives available to EK.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

(b)

To determine

The ethical issues in the given case.

(c)

To determine

The alternatives available to EK.

Answer 6

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

Answer 7

Chapter 2, Problem 2.7BYP

(a)

To determine

Case summary:

D. Company is a manufacturing company. The company’s assistant chief accountant is EK. The total sales of the company are recorded as $20 million at the end of the first quarter. EK prepares the trial balance for the further preparation of financial statements to be submitted to regulatory agencies. On the trial balance, there was a mismatch, with the credits exceeding the debits by $1,000. So, EK adjusted the difference by adding the same to the equipment account, considering it has huge account balances and it would not affect any important decisions. EK wanted to find the error but EK did not have time and EK was already late in preparing the trial balance.

Adequate information:

On the trial balance the total credits exceeded the total debits by $1,000.

EK, the assistant chief accountant adjusts the difference by adding the same to the Equipment account.

EK considers that the equipment account has huge account balances, so it would not be detected. Moreover, this would not affect anyone’s decision.

To determine: The stakeholders in the given case.

Answer 8

(b)

To determine

The ethical issues in the given case.

Answer 9

(b)

To determine

The ethical issues in the given case.

Answer 10

(c)

To determine

The alternatives available to EK.

Answer 11

(c)

To determine

The alternatives available to EK.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 2 - Prob. 1Q Ch. 2 - Prob. 2Q Ch. 2 - 3. Heath Precourt, a fellow student, contends that...Ch. 2 - Prob. 4Q Ch. 2 - Prob. 5Q Ch. 2 - 6. What is the normal balance for each of the...Ch. 2 - Prob. 7Q Ch. 2 - Prob. 8Q Ch. 2 - Prob. 9Q Ch. 2 - Prob. 10Q

Concept explainers

Videos

The ethical issues in the given case.

The alternatives available to EK.

Want to see the full answer?

Chapter 2 Solutions