[sherlita_thompk]

The net income of Steinbach & Sons, a department store, decreased sharply during 2007. Mort Steinbach, owner of the store, anticipates the need for a bank loan in 2008. Late in 2007, Steinbach instructs the store's accountant to record a $2,000 sale of furniture to the Steinbach family, even thoiugh the goods will not be shipped from the manufacturer until January 2008. Steinbach also tells the accountant not to make the following December 31, 2007 adjusting entries:

Salaries owned to employees... $900
Prepared insurance that has expired... $400.

As a pesonal friend, what advice would you give the accountant?

[sherlita_thompk]

This is my 2nd time submitting this Question... I hope I'm doing this right?

The net income of Steinbach & Sons, a department store, decreased sharply during 2007. Mort Steinbach, owner of the store, anticipates the need for a bank loan in 2008. Late in 2007, Steinbach instructs the store's accountant to record a $2,000 sale of furniture to the Steinbach family, even though the goods will not be shipped from the manufacturer until January 2008. Steinbach also tells the accountant not to make the following December 31, 2007 adjusting entries:

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

Why is Steinbach taking this action? Is his action ethical? Give your reason, identifying the parties helped and the parties harmed by Steinbach's action. And as a personal friend, what advice would you give the accountant?

[Curlyben]

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help

[codyman144]

Sounds like a homework question to me, please see the big red notice at the top of the accounting board re homework help.

That being said your “friend” would be breaking the law (falsifying business records) if he were to do this. Furthermore if he is a CPA he would be risking having his license revoked. If it were me I would find another job.