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Ethics Case Hubert Gundan is the senior accountant for Funtime Amusement Parks Com- pany. The company's sales are $30 million, and the company plans
Ethics Case Hubert Gundan is the senior accountant for Funtime Amusement Parks Com- pany. The company's sales are $30 million, and the company plans to open more amusement parks in the United States. Funtime's board of directors has scheduled a meeting with bankers to discuss financing the expansion. The company's current financial statements will be an important part of the discussions. Hubert has a deadline for prepar- ing the statements, which must be met without fail. A courier will pick up financial statements and deliver them to the board's chairperson at 8 A.M. on the the day of the meeting. The day before the deadline, Hubert discovers that the trial balance docs not balance. The credits exceed the debits by $1,202.16. Hubert realizes that even if there is no error, he and his staff will be working until at least midnight to prepare the financial statements and supporting schedules. Hubert is forced to make a decision. Because the discrepancy is small, he decides to enter the $1,202:16 as a debit to the Repairs Expense account. He supports this decision with the following reasoning: O The Repairs Expense account is very active and significant. Entering the small amount of $1,202.16 will not affect anyone's decision-making. No one can accuse the company of trying to inflate its profits because the difference has been charged to an expense account. High-level executives are waiting for the financial information. It would be embarrassing for the company to cancel its meeting. 1. Who are the stakeholders in this case? 2. What are the ethical issues involved? 3. What alternative courses of action, if any, are available to Hubert?
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