Ethical Issue In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money. To Describe: The ethical consideration in the case.

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Answer 1

Question

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

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Bonita Industries reports the following ledger account balances at June 30, 2025: Cash $1158 Accounts receivable 2838 Inventory 3384 Prepaid rent 104 Equipment 320 Accumulated depreciation-equipment 66 Accounts payable 920 Unearned rent revenue 144 Common stock 220 Retained earnings 6740 Service revenue 392 Interest revenue 80 Salaries and wages expense 200 Insurance expense 98 Assuming that all of the accounts have normal balances, what are total credits on the company's trial balance at June 30, 2025? A. $8562. B. $8586. C. $8496. D. $8482.

A trial balance will balance even if A. a journal entry to record the purchase of equipment for cash of $52100 is not posted. B. a $13100 cash dividend is debited to dividends for $13100 and credited to cash for $1310. C. a $510 collection on accounts receivable is credited to accounts receivable for $510 without a corresponding debit. D. a purchase of supplies for $595 on account is debited to supplies for $595 and credited to accounts payable for $559.

Equipment costing $15200 is purchased by paying $3800 cash and signing a note payable for the remainder. The journal entry to record this transaction should include a credit to Notes Payable. credit to Notes Receivable. credit to Equipment. debit to Cash.

Answer 2

Question

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

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Answer 3

Question

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

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Answer 4

Question

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

Answer 6

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

Answer 7

Chapter 5, Problem 5.8EYCT

(a)

To determine

Ethical Issue

In this case, the newly recruited assistant treasurer of Company S, Ms. T is responsible for issuing the checks for payment of invoices in order to keep up the company’s high credit rating and take advantage of all cash discounts. But, she is instructed by Mr. P, the former assistant treasurer who now has been promoted as treasurer, to prepare the checks net of discount on the last day of the discount and hold it at least for 4 days before the check are mailed for getting interest benefit on the money.

To Describe: The ethical consideration in the case.

Answer 8

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

Answer 9

(b)

To determine

To Explain: Whether the stakeholders are harmed or benefited.

Answer 10

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

Answer 11

(c)

To determine

To Explain: Whether the practice started by P should continue by Ms. T.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author explains that the newly recruited assistant treasurer of Company S, Ms. T, is responsible for issuing the checks for payment of invoices to keep up the company's high credit rating and take advantage of all cash discounts

To Explain: Whether the stakeholders are harmed or benefited.

To Explain: Whether the practice started by P should continue by Ms. T.

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Chapter 5 Solutions