The net income of steinbach and sons a department store

Reference no: EM13370787

The net income of Steinbach and Sons, a department store, decreased sharply during 2014. Mort Steinbach, manager of store, anticipates the need for a bank loan in 2015. Late in 2014, Steinbach instructs store's accountant to record a $2,000 sale of furniture to Steinbach family, even though the goods will not be shipped from manufacturer until January 2015. Steinbach also tells accountant not to make the subsequent 31^st December, 2014, adjusting entries:

Salaries owed to employees ......................................................................................................$900
Prepaid insurance that has expired............................................................................................400

1. Calculate the overall effects of these transactions on the store's reported income for 2014.

2. Why is Steinbach taking this action? Is his action ethical? Provide your reason, identifying the parties helped and parties harmed by Steinbach's action.

3. As a personal friend, what advice would you provide to the accountant?

Reference no: EM13370787

Questions Cloud

Show the differences in accounting handling of investments : show the differences in accounting handling of investments in which investor purchases between 20-50 percent of another

In november sold 4000 of gift cards 700 of these was : in november sold 4000 of gift cards. 700 of these was redeemed. in december sold 3000 of gift cards and redeemed 2000

On 1st january rare bird ltd purchased 12 percent bonds : on 1st january rare bird ltd. purchased 12 percent bonds dated 1st january with a face amount of 20 million. the bonds

At the vicksburg company actual sales are 1200000 and : at the vicksburg company actual sales are 1200000 and break-even sales are 840000. evaluate a margin of safety in

The net income of steinbach and sons a department store : the net income of steinbach and sons a department store decreased sharply during 2014. mort steinbach manager of store

On 112012 company abc gets 20000 shares of company xyz at : on 112012 company abc gets 20000 shares of company xyz at cash price of 10 per share. company xyz has 300000 shares

Overapplied or underapplied overheadat year-end 2010 dubs : overapplied or underapplied overheadat year-end 2010 dubs wind generator co. had a 40000 debit balance in its

Branson movies sells movie tickets for 13 for each movie : branson movies sells movie tickets for 13 for each movie patron. variable costs are 8 per movie patron and fixed costs

1 evaluate the child credit for the subsequent taxpayer : 1. evaluate the child credit for the subsequent taxpayer. apple and james who file a joint returnhave two dependent

User Account

All Pages